GOP Mortgage Solutions
Refinancing your home loan
You might have the needs to reduce your current interest rate or cash out from your existing property or look for a different lender which can provide a better service. Whatever the reason it is, GOP Mortgage Solutions is here to help to achieve your goal.
Step 1
What to consider when refinancing your home loan
Here are some key points to consider when refinancing your home loan:
- Understand if early termination fees might apply
- Know how much you could potentially save over the life of the mortgage
- Research what other home loans are available
- Do you want to shorten or extend your home loan term
- Are you wanting to consolidate multiple debts
- Know if you’re freeing up equity for a new purchase
- Understand what your new monthly repayments will be
- Know what your settlement costs will be and what government fees will apply
- Decide if your new home loan will be fixed, variable or a combination of both
Step 2
Understand what home loan refinancing is
Some great reasons to refinance include:
- Save money on your monthly repayments with a lower interest rate
- Consolidate your personal loans, credit cards and other debts into your home loan. While you’ll be paying a lower interest rate, making extra repayments to your home loan will help you pay it off sooner
- Access the equity in your home for investment purposes, renovation or to achieve your personal goals
- Take advantage of loan features that can add flexibility to your home loan
Step 3
Choosing your refinancing home loan
Some considerations to keep in mind when selecting your refinancing home loan:
- Principal and interest loans
- Interest only loans – many investors choose this option, however the principal will need to be paid down over the life of the loan
- Split loan – when a portion of your loan is fixed and a portion is variable
- Fixed rate loans
- Variable interest rate loans
- Redraw facility – have access to extra repayments on your home loan when you need it
- Mortgage offset – reduce the interest you pay on your loan by keeping your savings in a mortgage offset account
Step 4
Other considerations when refinancing your home loan
Some considerations to keep in mind when selecting your refinancing home loan:
- Making additional repayments – could be another way to help you save on interest over the course of the loan and also another way to help you pay off your mortgage more quickly
- Repayments frequency – understand if making payments more regularly (weekly or fortnightly) if better than making the standard monthly mortgage repayment
- Consolidate your loans – it’s probable you’ll save money if you’re only paying one set of fees and charges