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Most people refinance at some point. There are lots of reasons why it might be a good idea to update your loan package and Homeloan Corp can help you find a new loan that is more suitable for your current needs.
No matter why you're looking at changing your loan, we have access to a wide range of current products and the advice you need to make a wise choice. Here's some of the most common reasons for refinancing.
1. Refinancing to improve your property value.
Renovations will increase the value of your property however, they are also a considerable expense. Most banking and lending institutions will lend money to make renovations to a property, as long as the improvements do not cost more that the market value of the property, once renovations are complete. Refinancing for this reason makes the most sense, when the increase in property value, exceeds the cost of the renovations. This way you will have created additional equity that can be used for other purposes or increased the value for a profitable sale.
2. Refinancing to reduce expenses with smaller repayments?
As the cost of living increases, it is necessary to look at reducing expenses to put you in a better financial position. A mortgage will be one of your highest bills, so it makes sense to minimise the amount of repayments you make. Refinancing involves changing your loan to a better product which offers more flexibility and lower repayments. You can achieve this by either increasing your loan term or qualifying for lower interest rates.
3. Refinance to access your equity for an investment property.
If you've owned your home for a while, you may have an amount of equity built up. Lenders will let you refinance your mortgage to access some of this equity. One of the greatest benefits of investing in property, is the option to use equity as a deposit for further property investment. You don’t need to sacrifice your savings to stay in the property market, when you can use the capital gains in your existing home loan. Whether you are investing for the first time, or growing your portfolio, access to your equity is as easy as refinancing your existing loan.
4. Refinance to access your equity for other larger purchases.
Life can produce some unexpected large expenses such as the need for a replacement vehicle or the kids needing braces. You might want to invest in your child’s university education or perhaps organise a much needed family holiday.
Refinancing to free up equity for personal use won’t necessary improve your financial position, but it will allow you to make investments in other areas of your life that you wouldn’t normally have the money to pay for. For example, you need a car to get to work, so it is an investment in your future income earning potential. Refinancing for this purpose should only be done where absolutely necessary, because you don’t want to max out your mortgage and prevent yourself from making any further investments.
5. Refinance to improve your loan structure in line with your investment strategy.
Your property strategy will change and develop as you progress through different stages of life, so it makes sense that your lending matches your investments goals. Investors in the accumulation phase will focus on minimising expenses and maximising income and capital gains, whilst those investors in the retirement phase will focus on paying down mortgages to provide them with a source of regular income in retirement. Your lending structure must meet our circumstances and life goals.
Refinancing doesn’t have to be stressful or difficult. Homeloan Corp have simplified the refinancing process to make it easy for our customers to find a home loan, which is better suited to their current circumstances and investment goals.
Do you know if your existing loan is right for you? Let us find you a better deal and save you money!
Contact us today for a FREE home loan health check with one of our expert brokers.