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Why Refinance A Home Loan

Why Refinance A Home Loan

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You may ask why refinance a home loan, and the answer begins with Interest rates in Australia being at all-time lows, and you can save thousands. You may be paying too much for your home loan, and why give your hard-earned money to the bank?

Mortgage Broker Melbourne, What If We Finance, advises customers will refinance their home loan for several different reasons, including:

  • Historically low-interest rates mean your current home loan may be too expensive.
  • Fixed rates can be a way of protecting yourself from rising interest rates. Fixed rates offer certainty of repayments, but you should consider our guide. Should you choose a Fixed Rate Loan, You may even have a lender cover the refinancing costs or even receive some cash back.
  • To finance renovations, property investments or consolidate debts.
  • Access new product features such as offset accounts.

For most people, this strategy is a way to start saving money on their current home loan and achieve their future goals and aspirations.

Refinance

So, where do you begin?

Step 1: Understand what you are trying to achieve?

Are you just looking to save on your home loan or buy an investment property, finance a holiday or renovation, or for any other reason?

Step 2: Talk to your Independent Mortgage Broker

Your mortgage broker can help you understand your current loan’s cost and potential savings. For example:
  • Your current loan amount: $600,000
  • Current interest rate: 3.00%
  • Current monthly repayment: $2,530
  • New interest rate: 2.00%
  • New monthly repayment: $2,217
You save $313 per month or $3,756 per annum or $37,560 every 10 years of your home loan. Your mortgage broker will help you understand the savings.

Step 3: Watch out for the gotchas!

Your mortgage broker will help you understand if the following apply to you:

A. Fixed-Rate loan – if you are on a fixed-rate loan, there may be break costs or penalties to refinance. These can be substantial, and you must work with mortgage broker Melbourne What If We Finance to understand if these apply or

B. Is your loan more than 80% of the property value. If this is true, then Lenders Mortgage Insurance may apply. This can be prohibitive, and refinancing may not be the best option. Our guide on What is LMI and how you can avoid it provides more information.

C. Cashback is not a reason to refinance. Many clients say I want to refinance to avail of cashback. But that is not a reason to refinance. Many lenders who offer cashback offer higher rates so that the home loan may be more expensive; in summary, cashback alone is not a reason o refinance.

Refinancing can save you a considerable amount of money on your home loan but remember there may be several caveats you need to consider. This is where a mortgage broker like What If We Finance can assist.

Contact What If We Finance today to start saving and achieve your goals.

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176 reviews on
Matthew B
Matthew B
2022-06-05
Looking at the reviews for What If We Finance, it comes at no surprise to see so many 5-stars. Spiro handled the mortgage part of my girlfriend and I purchasing our first home. He made himself available to us around the clock and ensured that we were across the entire process and felt as comfortable as possible. We're very fortunate to have gone about buying our first home with Sprio and we'd be more than happy to use him for future purchases and to refer on to family and friends. A big shout out to Agnes also who busily works away in the background and also does an incredible job. You guys are the best!
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hari gowtham
hari gowtham
2022-06-03
Very happy with the results from Spiro from start to finish. Spiro and his team are very knowledgeable and have a very quick turnaround time. Couldn't be more happier with the service. Definitely my go-to person for upcoming purchase.
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Gary Shekhter
Gary Shekhter
2022-06-02
Great broker and trustworthy. Honestly had seen 5 brokers and fund this wonderful guy. Who helped from start to finish fast and had our loan in no time at all. Thank you again champ you did an amazing job
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Leonie Kemp
Leonie Kemp
2022-05-29
Thank you Spiro and Agnes for helping with the purchase of my first home. I needed to arrange finance quickly and Spiro did a fantastic job letting me know the best options for me and pushing to get the pre-approval so I didn't miss out on purchasing my home. Everything went very smoothly, thanks for helping make my first property purchase straightforward.
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S S
S S
2022-05-28
Thank you Spiro and team for your help in financing the mortgage for the recent property purchase. Spiro provided timely advise, guided me on the process and was swift in processing the documents. His friendly attitude makes the process even better. Thank you once again.
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Anita Naughton
Anita Naughton
2022-05-27
As a first home buyer I had very limited knowledge on what I needed to do. I searched for a broker and What if we finance stood out due to reviews. I had my first session with Spiro and never looked back! The whole process was seamless, I felt supported and could always connect with Spiro when needed. Spiro and Agnes are experts in what they do and I would highly recommended anyone looking for finance to choose What if we finance. I will be a lifelong customer and look forward to buying our next house with their support.
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Mahmoud Al Kilzi
Mahmoud Al Kilzi
2022-05-25
Spiro & his team did a great job by getting my loan sorted in time. I would recommend them to family & friend. Great work guys much appreciated.
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Rebecca Zeeman
Rebecca Zeeman
2022-05-20
Spiro and Agnes provided great help and advocacy in getting us our home loan. We felt they were always available and were super efficient in getting it all done on time! The process was so simple and without stress thanks them both.
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Irish Azcuna
Irish Azcuna
2022-05-09
I can’t thank Spiro and Agnes enough for making my first home purchase so efficient, stress-free and seamless! If I could give more than 5 stars I would. As a first home buyer applying for one or the government’s schemes, my situation would have been so complicated that I never imagined being able to complete the process in such a short time. Spiro’s in-depth knowledge, invaluable and always-available support, and genuine willingness to help get me the right mortgage for my situation, made everything possible. His pragmatic advice even helped me decide on the right property for us, which would help us achieve our long-term goals. I highly recommend Spiro and his team. We will definitely engage their service again for our next property. They are the best!
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Renee Briggs
Renee Briggs
2022-05-02
Spiro is reliable, has your best interest as his top priority and is fast to get great results. We wouldn't ask anyone else for their professional opinion- Spiro is the best in the business.
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