You can refinance your home loan to manage your debts. In today’s environment, many of us find that we hold a number of loans at any given time. These may include a mortgage, car loan, personal loan, overdraft facility, in-store credit cards and standard credit cards. Many short-term loans carry higher interest rates. The average rate is approximately 10% (roughly double that of a mortgage repayment!) and some are as high as 25%. As mortgage interest rates are approximately half that of short-term loan rates, refinancing to manage your loans with a refinancing mortgage can effectively half your monthly loan repayments.
Before considering debt management through refinancing, speak to one of our Refinancing Consultants. We offer independent advice and can guide you through the process of considering interest rates, repayment terms and refinancing costs. We will also help you determine your home’s estimated value, check rates, payments and more.
We have access to a suite of mortgage products and can ensure that by selecting the right product for you, with flexible payment terms you can manage your loans, reduce your monthly outgoings and save money in the long term.
In simple terms, it is trading in your existing or old mortgage for a new one.
To do this, you apply for a new home loan, your house will then undergo an appraisal to determine its value and your credit file will be reviewed. If everything is approved you will sign for and receive your new mortgage. The new mortgage is then used to pay off the old mortgage and provide you with additional funds if needed.