Is Your Loan Still Working for You? The Power of Refinancing
Refinancing is the process of replacing an existing home loan with a new one, either with the same lender or a different one. It should be viewed as a proactive financial health check to ensure a mortgage continues to meet the borrower's needs in a competitive market.
The refinancing process mirrors the latter stages of a purchase and can take anywhere from a few days to over a month, depending on lender processing times.
Meet with a broker to define your goals and assess your current loan situation.
Review and compare suitable loan options from our panel of 60+ lenders.
Submit a formal application and arrange for a property valuation.
Once approved, the new lender coordinates with your old lender to discharge the existing mortgage on settlement day.
Potential costs must be weighed against the benefits:
A powerful strategy often overlooked is the ability to negotiate a better deal without completing a full refinance.
Result: Financial benefits of refinancing with significantly less administrative effort!
Leverage the equity in your property to simplify your finances and potentially save thousands in interest.
Debt consolidation is a financial strategy that allows homeowners to leverage the equity in their property to simplify their finances. It involves combining multiple, often high-interest, debts such as credit cards, car loans, and personal loans into a single, more manageable loan by refinancing or increasing their existing home loan.
By paying off credit card debt with funds from your home loan, you immediately reduce the interest rate on that debt, which can lower total monthly repayments and free up cash flow.
Lenders determine the amount that can be borrowed by calculating the "usable equity" in your property:
Usable Equity = (Property Value × 80%) - Outstanding Loan Balance
This strategy carries a critical risk that must be carefully managed. Consolidating a short-term debt, like a five-year car loan, into a new 30-year mortgage term can result in paying significantly more interest on that debt over the long run, even at a lower rate.
The success of debt consolidation hinges on financial discipline.
It is essential to close the now-paid-out credit accounts to avoid the temptation of accumulating new debt. This prevents the cycle from repeating.
A strategic approach involves structuring the new loan repayments to be higher than the minimum required, with the goal of paying off the consolidated debt portion within its original timeframe, not over the full 30-year term.
This ensures the strategy delivers true long-term savings rather than just short-term repayment relief. The discipline to maintain higher payments is what makes consolidation work.
Success = Lower Rate + Closed Accounts + Higher Repayments + Discipline
Let's review your current loan and explore whether refinancing or debt consolidation could save you thousands. With access to 60+ lenders, we'll find the best deal for your situation.