You might have heard people talk about ‘refinancing’ their mortgage. What exactly is this? Why refinance? How do you refinance? Let us shed some light….
What is Refinancing?
Refinancing is when you transfer your home loan from one lender to another. In essence, when you refinance, you’re paying off your existing loan, then taking out a new loan with a different lender.
The process can be confusing and complex, but that’s why we are here, to take the pain and hassle away!
On a side note, you may have heard similar terms being used, for example, refixing or restructuring your loan but these are different things. Refixing is when your current term on your loan is to expire and you lock in a new interest rate for a set period of time. Whereas restructuring, is when you review how your existing loan works for example fixed or floating. Refinancing means you are switching lenders completely.
Why Refinance Your Mortgage?
Refinancing your loan/mortgage can come about for a number of reasons:
• Debt consolidation
• Home Improvements and upgrades to property including subdivision
• Purchase of additional property
• Lack of flexibility being provided by existing lender
• Going into business or looking to grow your business
• Better loan structuring available with a new lender
• Restructuring of loan repayments on account of changed income situation
• Better interest rates on offer at a new lender
• Your situation has been previously faced by many others and so you should not be discouraged from refinancing on your first enquiry
Whatever your reason, the friendly, experienced team at Rapson can help!
How do you refinance – what’s the process?
As mentioned above, Mortgage Refinancing is often necessary. Clients wishing to refinance their mortgage from one lender to another are often unsure of how to go about the process and do not want to be involved in drawn out discussions with their current lender.
We have a simple process and take care of all the negotiations/refinance requirements allowing you to maintain your normal daily life without having to justify your reasons for requesting change. Our experience in dealing with the many and varied situations that we have successfully handled for clients over many years, plus our daily interaction with numerous mortgage providers, means our know-how is available to you. This provides you with confidence to get an affordable loan knowing that we can assist in nearly every situation.
We understand that every individual mortgage situation is unique, and we will listen carefully to fully understand your current position so that we can advise and assist in the most appropriate and relevant way to secure you the best mortgage outcome possible.
So that’s mortgage refinancing in a nutshell...if you’d like to learn more about how we can assist you, please contact one of our experienced team.
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