A change is as good as a holiday
Even better if it saves you interest
There are many reasons to consider refinancing your home loan. Perhaps you want to borrow some extra money to fund some home improvements? Maybe you’re just not happy with your current bank and you want the credit union experience?
The first thing to do is reflect on all the features and qualities you’re looking for in a new loan. For example, would you like a loan with no monthly or annual fees? Do you want an offset account? Or would you prefer a fixed interest rate? And equally importantly, what don’t you want?
Understand the costs of refinancing
At the same time, you’ll need to consider the costs of refinancing to make sure you will actually come out ahead. If you’re in a fixed rate loan with your current lender, you might have to pay break costs to exit the fixed term, so it’s important to clarify that.
You’ll certainly have to pay discharge and government fees along the way, but even a small reduction to your interest rate can offset those fees very quickly and leave you thousands of dollars better off over the term of your loan.
The important thing is to make sure you understand the costs and can adjust the amount of your loan to cover them if needed. Credit Union SA can help you with this, just get in touch.
Establish a realistic budget
This is essential if you’re planning to renovate or extend your home at the same time and want to borrow additional funds, because your enjoyment will fade very quickly if the increased mortgage repayments require unwanted compromises in other areas of your life.
Choose the right loan for you
It’s important to choose the right home loan for your circumstances. As you’ve already found out, the right loan now may not be the right loan into the future, so it’s worth taking the time to think about what you really need and avoid costly mistakes.
Arranging the right loan
If you’re keen to find a better home loan, Credit Union SA can help you find the loan to suit your needs. For example, if you already have one of our home loans and it no longer meets your requirements, we could potentially raise or lower your repayments, change their frequency, or shift to a fixed, variable or split rate.
The first step is simply to talk to us about your changing needs, and we can guide you from there. One of our Mobile Managers can visit you at your convenience - just make an appointment when it suits you.
If you’re refinancing and your property has increased in value, it’s well worth reviewing your current level of insurance, particularly if you’ll be undertaking renovations or additions that will increase the value of your buildings even further.
This is general advice only and doesn’t take into account your objectives, financial situation or needs. Conditions, fees and lending criteria apply and are available upon request.