Understanding mortgage refinancing

At Loan Station, we understand refinancing. Our Lenders/Finance Brokers in Sydney offers competitive rates with great incentives like cashback for refinance of up to $3000. At the same time, you can save on your refinance home loans rates and monthly repayments.

Benefits of Refinancing Home Loans

If your circumstances have changed since you last took out your home loan, it may be time for a mortgage refinance

Refinancing your current home loan may help you:

  • Secure a lower interest rate or lower fees
  • Increase your borrowing power
  • Reduce your monthly repayments
  • Consolidate several loans

Savings and better features

At Loan Station, we can find you the most competitive rate possible with incentives that are beneficial to you. Switching to a lower rate isn’t the only way to save money on your home loan. Features like offset accounts and redraw facilities can help you reduce the interest charges on your mortgage and pay off the loan faster.

Learn more about cashback for refinance

A cashback for refinance is when a lender offers you a financial incentive for switching your home loan to them. But while these special deals can be tempting, they shouldn’t be the sole determining factor when considering a mortgage refinance. That’s because a loan with a lower interest rate and no cashback deal could potentially save you more money over the long term compared to a loan with a cashback for refinance deal and a higher interest rate.

At Loan Station, we can assist you in analyzing the numbers so that you can make an informed decision about your home loan refinance.

How to refinance a home loan

A mortgages refinance can get you better rates, terms and features, helping you save money and get a loan more suited to your needs.

Switching to a new lender is easier than you think when you work with Loan Station as we’ll do all the hard work for you.

You can read more about how to refinance a home loan here but, generally, the steps involve:

● Assessing your current home loan to understand its terms and conditions.
● Shopping around to try to find the best refinance home loans for your situation
● Crunching the numbers to make sure a refinance home mortgage is a smart financial move
● Collecting the necessary documents such as payslips and tax returns.
● Applying for a new loan

Home loan refinance calculators

You may wish to use a home loan refinance calculator to give you an indication of the benefits of refinancing. That can be a good first step, but, please note, a calculator can only tell you so much, as it won’t know all the intricacies of your unique situation. So there’s no substitute to speaking with an expert mortgage broker.

Your broker will be able to give you an idea of the current rates for refinancing home loans. These can differ from borrower to borrower, as lenders may award lower rates to borrowers they deem to be lower-risk.

When you shouldn’t refinance your home loan

While refinancing your home loan can be beneficial, there are times when it may not be the best decision as it’s not suitable for every borrower or situation.

For example, you should generally avoid refinancing your home loan if you’re planning to sell your home soon, as the cost of refinancing can outweigh your savings. Similarly, refinancing may not make sense if you have a fixed-rate mortgage, as your current lender will often require you to pay a break fee to exit the loan.

Additionally, if your financial situation has worsened since you first took out your loan, you might not qualify for a better interest rate. As such, it’s important to carefully consider your situation and consult with an expert mortgage broker, such as Loan Station, before deciding to refinance your home loan.

Want to save money on your home loan?

Fill in this form and one of our lending professionals will be in touch to discuss how a mortgage refinance could put you in a better financial situation.

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