Access home equity
Your home is likely to be one of your most valuable assets, and by harnessing home equity you have the opportunity to build additional wealth or simply achieve personal goals. Peninsula Home Loans can assist you with accessing the equity within your home to allow you to renovate, retire, take a holiday or whatever your heart desires.
Refinancing a home loan to consolidate debt
Refinancing your home loan can provide an opportunity to streamline your debt, and potentially reduce the overall interest you’re paying on multiple debts through the process of ‘debt consolidation’. It means folding several high interest debts into one lower rate debt – which could be your home loan – and this may reduce your total monthly repayments.
However, it’s important to note that debt consolidation can come with some downsides. It can turn a short term debt like a personal loan into a long term debt (your mortgage), and that means paying interest on the balance for a much longer period which could cost you more in the long run.
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.
Secure a better interest rate
Refinancing your home loan can be a great way to secure a better interest rate, ensuring that you will spend less money over time and, hopefully, pay off your mortgage faster. Right now, the Official Cash Rate is at a record low, so this is definitely something to keep in mind.
You can also refinance in order to secure a loan that better meets your lifestyle requirements. You might swap from fixed to floating, or vice versa, or even change the repayment frequency of your loan to a more suitable option.
Refinancing a home loan for better loan features
Not all home loans are made equal and there is much more to a loan than just the interest rate. With your current loan you may be missing out on other loan features such as flexible repayments, repayment holidays, an offset account or redraw facility or flexible rate options.
Interesting in finding out more about your refinancing options? Fill out the form or call us on 1300 55 90 84 to see if you are eligible.