Utilising the equity available in your home could be a great way for you renovate your existing home and take advantage of home loan rates rather than personal loan bank rates or perhaps to look toward securing an investment property.
Secure a better interest rate
One of the key reasons home owners choose to refinance their loan is to secure a lower interest rate and reduce their monthly repayments. However, refinancing can come with some costs, so it’s essential to discuss the pros and cons of refinancing.
Refinancing your home loan can provide an opportunity to streamline your high interest debt, take advantage of lower home loan interest rates and reduce the overall interest you’re paying.
It’s important to consider that debt consolidation can come with some downsides. It can turn a short term debt like a personal loan, GE money, Q Card, etc., to long term debt. Adding this debt to your mortgage means paying interest on the balance for a much longer period which could cost you more in the long run.
We can work through the numbers with you but the basic rule of thumb is for debt consolidation to be truly cost effective, you need to commit to making additional repayments to pay off the enlarged loan as quickly as possible.
It may just be that you’re looking for a change and don’t feel like your current bank is willing to listen to you, Banks like any business need to listen to their customers and if they don’t then they will lose them. Our aim is to find you a bank that best suits you and will listen. We will make sure they continue to provide you great service.