Questions we think you should ask before refinancing your home loan
- What do you hope to gain from refinancing?
- Is it a better interest rate?
- Debt consolidation?
- A more suitable home loan product?
- Is it to save money and reduce your monthly repayments?
To assist you in making the right choice we think you should have considered the below questions and have determined clear answers.
- What are the costs of refinancing?
- What are the benefits of refinancing?
- Is the new loan going to meet my goals?
- What’s my time frame?
- What does the new home loan need to offer to be the most suitable one for me?
We feel “I’m too busy” is the mantra of the world today. We hear it everywhere we go. We meet lots of people who have refinanced their home loan to improve their circumstances without doing the necessary homework simply because they were too busy. It’s only after the fact that they find they are no better off than when they started. In actual fact they now owe more money than before they refinanced!
It’s a common fact that most people will refinance their home loan every 3 – 4 years. When our clients come to us wanting to refinance we first go through the above list of questions and more. We then determine with our Clients whether it is in their best interest to refinance or stay where they are. We can then recommend what we believe is the appropriate course of action.
We believe refinancing is not always the most appropriate course of action. The benefits need to be clear and obvious before we would suggest to a client that refinancing is the best option.
If you are curious to find out if there is a better option for you, then call us to discuss your situation. We can determine quite quickly if your current home loan is the most appropriate.
A simple call to us can save you wasting hours of your time that could quite easily be spent elsewhere. In addition, we are most likely able to save you thousands of dollars in the process.
