Reviewing your home loan every couple of years can help ensure you're always getting the best possible deal. New products and opportunities hit the market regularly and every QInvest LoanFinder mortgage broker is an expert in what features and benefits are available and suit you.

Reasons to consider refinancing include: 
  • when your circumstances change, like having a child or getting a new job 
  • when your income changes and repayments need to meet with your new ability to repay 
  • having a new goal to pay off your loan sooner 
  • consolidating other debt into your home loan
1. What’s refinancing? 

Refinancing is the process of replacing your current mortgage deal with a new one. 

2. Why refinance? 

The main reasons for refinancing are: 

  • covering the cost of home renovations or a new home build 
  • consolidating debts to take advantage of lower rates 
  • finding a better deal or simply wanting to change lenders

 3. How does refinancing work? 

When you take out a new loan, you use some or all of the funds to pay out your existing loan. The new loan may come from a new lender, or you can refinance with your existing lender. If you choose to use a new lender, that lender will look after the process of paying out your existing loan. 

4. Should I increase the term of my mortgage when refinancing? 

 To ease financial commitments, you may benefit by choosing mortgage refinance over the longest period, otherwise known as 'stretching' your mortgage. This normally helps lower monthly payments and frees up funds for other financial responsibilities. In the short term this may offer you financial relief, but in the long term you may pay more interest.

Suitability of current mortgage 

If you've had your current loan for a while, it's likely that you can get a better deal. It may be that you just want a better rate, or it could be that your existing loan doesn't include options like redraw. 

A QInvest LoanFinder Broker can work with you to find a better loan to suit your current needs. 

Value of refinancing 

When looking at the financial advantages of refinancing, you should consider all the costs in the refinance and not just your monthly repayments. 

For example, you may have to pay exit fees for your existing loan, and this could add up to thousands of dollars. Our brokers can help step you through the process to help you make the right decision. 

Debt consolidation 

If you have other debts, such as personal loans or credit cards, it might be worth consolidating them into your new loan, especially if those other debts are attracting higher rates of interest. Refinancing may help with those extra monthly costs and help get your budget under control. 

One thing to remember with consolidating debt is that your new home loan may increase in size, meaning it will now be paid off over a longer period of time and this will add to the amount of overall interest you pay. In the short term this may offer you financial relief, in the long term you may pay more interest.