The 15 questions to ask if you're considering refinancing
Property ObserverDecember 7, 2020
If you're looking at refinancing, then here are 15 questions you should be asking.
- Do you want to reduce your monthly repayments?
- Are you looking to switch from a variable rate to a fixed rate? This may be due to the risk of higher repayments if interest rates rise in the future, or because you’d like more certainty around repayments.
- Are you dissatisfied with the service provided by your current lender?
- Is your current interest rate not as competitive as other lenders’?
- Would you be better off with a cheaper rate with fewer loan features?
- Would you benefit from changing to a loan with more features (e.g. offset account, re-draw facility) or perhaps you have features you are not using?
- Would you prefer to pay off your home loan sooner?
- Have your circumstances changed since you first took out your loan (e.g. you have started a family)?
- Are you considering buying an investment property?
- Do you think that debt consolidation might benefit you (e.g. consolidating your credit cards and personal loans)?
- Are you planning any home renovations over the next few years?
- Do you want to raise cash (by topping up your loan) so you can, for example, purchase a car, buy shares or take a major holiday?
- Do you have a fixed-rate home loan that will expire soon?
- Do you have a honeymoon rate that will soon revert to the standard variable rate?
- Are you coming to the end of an interest-only loan term?