- Since you took out your home loan, your circumstances may have changed
- Interest rates may have changed too, as they are historic lows nowadays
- The average home loan is refinanced four or five times, writes Harry Bozin
Do you know how well your current home loan stacks up?
Because since your home loan was approved, chances are that interest rates may have moved and, no doubt, parts of your life have too. That’s why it’s important to consider whether it’s time to refinance your loan.
Ask yourself these questions
- Has the official cash rate changed since your current loan settled?
- Has the rate your lender is charging you changed?
- What about your current fees and charges, are these a little high?
- Chances are the market has changed also, and how has this impacted you?
Remember, new products designed to attract borrowers are always being introduced into the market, and lending appetites are an ever-moving feast.
Let’s not forget that things have probably changed in your life since you took out the mortgage.
Your income may have changed, as well as your expenses, and your financial goals could also be different.
Even though most loans are around 30 years in length, you may be surprised to hear that Australians often change their home loan every 4 to 5 years as they refinance.
Refinancing is a chance to look at what’s available in the market and see whether your current loan is still the right one for you. If it’s not, it may be time to refinance.
Please note, we do not provide tax, legal or accounting advice. This guide has been written for general informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. We encourage you to consult your own tax, legal and accounting advisers before engaging in any transaction.