REFINANCE YOUR LOAN
What is refinancing?
Refinancing is essentially giving your home loan a fresh start. You're obtaining a new loan to settle the balance of your existing home loan. While this might sound like a merry-go-round of borrowing, it's actually a strategic move that can save you money and optimize your financial health. This process can be carried out with your current bank or you might choose to dance over to a different one. Considering a switch? It's prudent to scrutinize your current home loan, especially in today's climate where banks might dangle carrots like cash back incentives or even waiving those pesky application fees to get you onboard!
How can refinancing help you?
Reduce your repayments
With an improved credit score or a changing market environment, you can lock in a loan at a reduced rate.
Pay off your loan sooner
Adjusting the term can allow you to repay faster or reduce your monthly obligations, suiting your needs.
Align your loan type to your financial goals
Transition between variable to fixed rates, or vice-versa, to better align with your financial plans.
How Much Can I Borrow?
When it comes to refinancing, you aren't limited to the exact amount of your original loan. Typically, lenders will permit you to borrow between 80% to 95% of your property's price. The exact amount hinges on several factors:
- Equity: The more equity you've built up in your home, the higher the loan amount you can potentially access.
- Credit Score: A robust credit score can not only fetch you a bigger loan but also snag you a more favorable interest rate.
Will I Get Approved?
A million-dollar question! Lenders assess several parameters before giving you the green light. Key things they'll peer at include:
Income & Employment: A stable job and consistent income are paramount. Lenders love predictability.
Property Valuation: If your property's value is assessed and comes in lower than anticipated, it might curtail how much you can refinance.
Property Type: Whether it's a condo, a single-family home, or an investment property, different assets come with distinct refinancing rules.
Refinancing isn't just a numbers game; it's a strategic move to enhance your financial position. If the potential perks sound tempting, delve deeper. Your home isn't just where your heart is; it's also a potent tool to optimize your finances. Shine on! 🌟
ANDREA PALELLA (O'SHEA)
DAVID FRENCH
MATHEW CROSSLEY
MATTHEW GOODYEAR
