What Is Refinancing A Home Loan

What does refinancing entail? Find out with this comprehensive guide

Refinancing involves changing your existing loan and moving it with a new one that better suits your current needs. Refinancing has the potential to result in significant savings, and it's possible to refinance with your current lender. However, the new loan should come with improved rates and terms designed specifically for your individual situation.

Koalify help simplify the process of finding the ideal loan for you with a free complimentary home loan health assessment click here to see how much you could potentially save.

Why refinancing has the potential to save you thousands!!

  1. Lowering Expenses: By securing a lower interest rate, you can effectively decrease your monthly mortgage payments.

  2. Accelerating Loan Repayment: With flexible loan terms, you gain greater control over your repayment schedule, potentially shortening the duration of your home loan by several years.

  3. Leveraging Home Equity: Refinancing allows you to tap into the equity in your home, providing access to cash for various purposes such as home renovations, vacations, or upgrading your vehicle.

  4. Gaining Financial Control: Consolidating your other debts into your mortgage can lead to reduced interest rates and a clearer overall financial outlook.

    Avoid the 'set and forget' mentality when it comes to your loans. You might be overpaying. According to the Australian Competition & Consumer Commission (ACCC), Australians with loans that are 3-5 years old are, on average, paying an additional 0.58% over the loan's lifespan.

    Even a single percentage point can have a significant impact. If you have a $500,000 home loan with an interest rate of 6% and you're paying 0.58 percentage points more than the best available rate, you're essentially paying more than necessary in interest. This translates to an average of $250 extra per month, $2,900 per year, and $87,000 over a 30-year loan term. 

    Wouldn't it be wiser to channel that money into savings instead of paying it in interest? Over time, it could accumulate enough to be used on a wide variety of things like a holiday, a new car, school fees etc. 

Why Work With Us?

Free of Charge - Our commitment is to serve in your best interests by identifying the most suitable lender for you, and we do so without any cost to you, now or in the future.

Your Best Interest - Driven by both legal requirements and our unwavering ethical principles, our primary focus is on your best interests, always placing them ahead of our own.

Comprehensive Loan Support - Throughout the entirety of your loan journey, we take on the responsibility of managing it on your behalf. This includes conducting regular check-ins to ensure you continue to enjoy the most favorable rates and accommodating any minor adjustments you may require. We're dedicated to being with you for the duration of your loan.

The images or content displayed on the koalify.au website, which feature financial product details including interest rates, are solely for demonstration purposes.The Koalify website does not endorse any specific credit products, and nothing contained within the site should be interpreted as offering credit advice. Should you opt to engage with a Koalify home loan expert, credit assistance might then be provided, at which point you will receive the pertinent information and documentation relevant to your interaction. Access and use of this site and any of its services are governed by our Terms & Conditions and Privacy Policy.

© 2024 Koalify. KOALIFY GROUP PTY LTD trading as Koalify. ABN 43673755130. Credit Representative Number 557851 is authorised under Australian Credit Licence Number 389328. All Rights Reserved.