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Why would you refinance?

July 22, 2020

Have you ever felt you’re paying too much interest on your current loan/s, or perhaps you want to use the equity in your asset to finance your business or lifestyle? When was the last time you revisited your loan structures to make sure you’re still getting the best value rate? Refinancing essentially allows you to replace your current loan with a new one, which can cater to your current needs better, and save you cash in the process.

Refinancing is the answer if you:

  • Are unhappy with your current lender
  • Need the equity to fund other costly expenses (e.g renovations or extensions)
  • Switch between fixed and variable rates and want to change this
  • Need to consolidate debt
  • Want to buy a vehicle or other large item through financing
  • Want to reduce mortgage repayments
  • Want to pay your loan off quickly

Refinancing your loan is not something to be done hastily though. Although there are several benefits of refinancing, you need to weigh up the costs of restructuring your loan against the benefits.

As a lawyer, fees such as lenders mortgage insurance (LMI) for home loans can often be waived by financing with Legal Home Loans. Having a chat with us will help you find the best solution for whatever you’re looking to buy through financing, and save you thousands of dollars (on a $1million loan, LMI is $20k).

Some of the key benefits:

  • Saving money on accumulating interest with improved rates

    There may be better rates offered by a different lender, or loan features which will inevitably save on interest
  • Better loan features

    You could potentially have less or waived fees as a certain type of client (e.g lawyers are normally perceived as a low risk client and can qualify for LMI exemptions, 90% loans, etc.)
  • Clear your mortgage debt in less time

    Refinancing allows you to change the length of the loan, where you can pay off your loan faster (keep in mind this will incur higher monthly repayments, but could benefit through having less time for interest to accrue).

So how do you go about finding the best deal that suits, another time around? Well with a broker, all the research and searching around for the best deal is done for you by people who specialise in the field— saving you time, money, energy and sometimes your sanity!

Brokers can generally cater to most features of a loan for a client. For example, if you wanted to request your new loan to be executed with the same lender, we can generally accommodate this as well (as a long as it’s a good deal).

Brokers here at Legal Home Loans take care of the processing and searching for your refinancing, but what is a broker? Check out our previous blog about it! If you’ve read it already, you would know that having us help you DOESN’T cost you anything at all. If you’re interested in refinancing, contact our brokers on (02) 9030 4020, +61 423 347 562 or email on enquiries@legalhomeloans.com.au

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