When it comes to refinancing, homeowners are often put off by the hassle involved. It feels like a lot of paperwork, time and energy. And they often don’t see how they’ll be better off in the end.

But refinancing, especially with an expert mortgage broker on your side, is actually much easier and quicker than you might think. And at the end of the day, it could put you in a better, more secure, financial position.

Five reasons you should refinance your home loan

1. Lower interest rates

Refinancing is an excellent way to secure a lower interest rate on your home loan. This directly impacts not only the amount that you’re paying each month, but also the amount that you’ll have to repay in total over the life of the loan. And even the smallest difference in interest –even 0.5% – can save you thousands of dollars over the life of the loan.

When you refinance you have the opportunity to negotiate with your current lender to try to get a lower rate (sometimes referred to as a concessional rate). Or you can look around at other lenders. Often lenders will offer new customers a lower interest rate in order to entice them away from their current lender – and this could work out in your favour.

Even better, when you work with a mortgage broker – like our expert team – they can negotiate for you. And because they have an ongoing relationship with the various lenders, they can often secure you a better interest rate than you might be able to do on your own.

2. Use your equity

When you’ve had a mortgage for a while, you’ve likely built up some equity in your home. Home equity is simply the difference between your property’s market value and the balance of your mortgage. In an economy where house prices have been on the rise – such as Australia – you may be building equity far more quickly. And that’s because the value of the home is rising as well.

Equity is great because you can access it for your own needs. You can use the money in any number of ways from home renovations to school fees, or even for taking a much needed holiday.

Read more: Equity home loans and how they can help you

3. Access a new loan product

You might currently have a variable rate home loan with a redraw facility. But with our rising interest rates perhaps a fixed home loan might suit you better over the next couple of years. And maybe, rather than a redraw facility, you might prefer to utilise an offset account to help you pay down your loan more quickly.

Refinancing gives you the option to explore the different loan products on offer. If you’re curious to see what benefits you might get with a new loan product speak to one of our specialists. They will be able to give you expert advice on the options available and what might work best for you.

Read more: Should I choose offset or redraw if I'm refinancing?

4. Consolidate your debt

Often your home loan will be one of the least expensive loans you’ll ever be able to access. If you’ve taken out an auto loan or a personal loan for other expenses, or even if you have large credit card debt, refinancing is a great time to consider consolidating those into your home loan.

This is a great option because you’ll only be making one monthly repayment instead of many. And you’ll get to roll your higher interest debt into a lower interest home loan debt saving you money in the long run.

5. Save on fees

Ongoing home loan fees can cut into any savings that you might have from lower interest rates or even cashback bonuses. But often homeowners neglect to figure this into their financial outlook. If you’re finding that your home loan fees are impacting your financial health, refinancing is the perfect time to find a lender and loan product with low or even no ongoing fees.

When you are considering a new home loan make sure to think about how the interest rate plus fees work together. Perhaps it’s worth having a very slightly higher interest rate but no fees. Or maybe you can find a competitive lender that offers both a low interest rate and no fees. Your mortgage broker will certainly be able to help!

Home loan refinancing for the win!

Home loan refinancing is generally a win for the homeowners. If you explore your options and find that you’ve got the best deal out there – great! You don’t have to make any changes. But from our experience, there’s almost always money to be saved, and better deals waiting in the wings.

Read more: When can you refinance a home loan

Read more: How much does it cost to refinance a home loan

Read more: How long does it take to refinance a home loan

We're here to help

When you’re ready to explore refinancing, we’re here to be your expert guides!

We can find you the best home loans from more than 40 of Australia’s biggest banks and specialist lenders so you keep more money in your pocket.

So, give us a call today at Lending Loop.