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If your circumstances change or you want a better deal, you could consider refinancing your home loan.
But remember, just like with your first mortgage, when it comes to refinancing, there's no magic solution. It's a matter of finding a loan that meets your current and future needs – both personally and financially.
The main reason why you might choose to refinance your home loan is because your circumstances have changed. Maybe you've received a pay rise and are able to make larger repayments and pay off your home loan sooner, but your current loan doesn't allow for something like this.
If your financial situation is different from when you locked in your home loan, you might be able to find new loans with new features that might better suit your current needs. The longer you've been paying off your current home loan, the more likely it is that your needs have changed.
There's also a chance that market rates have changed, too. In fact, it's a good idea to set an annual reminder to check how your home loan compares to the current home loan deals out there.
When done smartly, refinancing can do you and your bank account a world of good. Here are some of the top reasons why you might choose to refinance your home loan:
You may be able to access your home equity and get a cash out refinance to help fund your renovation project or moving expenses.
You could save thousands of dollars by taking advantage of improved market conditions and features like:
You can sometimes streamline your finances by consolidating your other debts, like credit cards or car and personal loans, under a new home loan.
If you have enough, you could refinance to access your home equity for investing in shares or other property, which may also provide tax benefits.
If you've decided refinancing is right for you, you'll need to get a few things in order to make it happen.
Take a look at our home loan options to find the one that's right for you. Need more help? Speak to one of our home loan specialists.
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This article is intended to provide general information of an educational nature only. This information should not be relied upon as financial product advice as it does not take into account your individual objectives, financial situation or needs. You should consider the appropriateness of the information to your own circumstances and seek independent legal and financial advice prior to making any investment choice. There are risks associated with any investment and this document is not intended to list all of them in respect to any particular investment opportunity. Prices, levels and indications contained in this document are illustrative only and may not represent future performance. HSBC does not warrant or represent the performance of any investment opportunity.
Disclaimer: Credit provided by HSBC Bank Australia ABN 48 006 434 162. AFSL/Australia Credit Licence 232595. Home Loan Terms (PDF), Personal Banking Booklet (PDF), Fees and Charges (PDF), and lending criteria apply. This article does not take into account your personal or financial situation. Please consider a relevant Product Disclosure Statement, available at hsbc.com.au or by calling 1300 308 008 before making a decision about this product.
