Refinancing a home loan means availing a new loan from another lender to pay off an existing one. Two primary reasons for switching a housing loan (also known as refinancing) are
- To get the benefit of a lower rate of interest
- To avail a top-up on the original loan amount.
What Does Refinancing Involve?
Refinancing a mortgage involves taking out a new loan to pay off your original mortgage loan. Refinancing or consolidating debt is a smart way to reduce interest and cost you a little less over time. Whether this is switching credit card debt and store cards to a personal loan or taking advantage of record low-interest rates to get the best deal for your mortgage can save you a good deal of money.
When should you refinance your home?
One of the best reasons to refinance is to lower the interest rate on your existing loan. Historically, the rule of thumb is that refinancing is a good idea if you can reduce your interest rate by at least 2%. However, many lenders say 1% savings is enough of an incentive to refinance.
Discuss Your Options with Us Today
With Australia’s current low-interest rates, there’s no better time than now to discuss a home loan refinance. Book an appointment with TSK Accountants today and discover how we can help you.
TSK Loans Pty Ltd is an authorized corporate Credit Representative (#528475) of Australian Credit Licence No. 384324 including our brokers:
Taranjit Singh Kahlon is an authorized Credit Representative No. 528474) – Call him today (03) 8721 9989