Refinance your Loans
Need to refinance your loans? We can help!
Adelaide Residential Home Loans have over 35 lenders. We are easily able to compare your current loan with the latest rates and special offers from all our lenders.
There are many reasons why you would want to refinance your loans. Here is a list of a few
Reasons to Refinance your loan
Take advantage of a lower interest rate
If you have loans more then a few years old the reality is your interest rate is likely higher than the current market rate. By refinancing your loans, you can take advantage of a much lower rate.
Reduce your repayments
Refinancing your loans can reduce your repayments. This could be via a lower interest rate or locking in your interest rate with a fixed rate, or extending your loan over a longer time period.
Consolidate debts from other loans and credit cards
If you have multiple credit cards, car loans or even personal loans you can refinance them into your home loan to create one simple repayment. This will not only reduce your overall costs each month but simplify the amount of repayments required to be made each month and get better control of your cash flow
To take advantage of loan features you don’t currently have
Every lender has different options available for their loans. Whilst some are quite open and flexible with these options, others are not. Speak to us about your loan requirements and we can find you the loan that suits you the most based on what you are looking to do.
Examples of this include
- Fixed vs Variable
- Offset account
- Redraw facilities
- Early repayment options
- Repayment frequency
Make use of the equity in your home for renovations or investments
Refinancing your loans can unlock the equity in your home for use on renovating or investment opportunities.
Although refinancing your loans can generally be beneficial to you, there may be times it could actually cost you more money. Refinancing always comes with fees and other charges especially when moving to a new bank or lender. In some cases, it is not advantageous to refinance. This is where we come in. We take your personal situation into consideration and then advise you whether refinancing your loans is the right thing for you to do.
Want to do some refinancing sums on your own?
Use our calculators to get an idea of what it will cost you to refinance your loan
FAQ's for Refinancing
Do your research, get professional advice and understand loan products available to you and explore all your options. Your level of income, level of savings, household budgets, and any changes to your circumstances in the future are all key factors in determining what loan type is best for you.
Deciding between variable and fixed interest rates is a personal preference. We can talk you through the options currently on offer and help you with this decision.
Variable rate home loans are generally more flexible and have more features than fixed rate home loans. The interest rate fluctuates with the market ensuring you always have a market rate for your home loan.
Features of variable loans can include such things as redraw facilities and extra repayment options.Â
Fixed Rate home loans ensure you have the same repayment over a fixed term. You lock in your interest rate and initial repayment over an initial agreed term usually between 1 and 3 years. Fixed loans have less flexibility and often have restrictions to redraws or extra repayments over the fixed term. If you look at breaking your fixed rate home loan, you will generally have to pay a break cost which can be quite significant.
Redraw is a loan feature that allows you to access any early repayments made on your loan repayments on your loan. For example, if you made $5,000 in advance repayments on your home loan, a redraw feature allows you to get access to the $5,000 of repayments, put $5,000 back into your bank account, and increases your loan back to where it previously was as if you had not made those repayments in the first place.
An offset account is a separate bank account that is linked to your loan. For any funds held in your bank account, automatically offsets against the loan when it comes to the bank paying interest. For example, if your loan balance is $400,000 and you have $5,000 in your offset account, you only pay interest on $395,000.
A loan redraw feature is generally availiable in all basic home loan products. An offset is seen as a premium feature, generally home loan prducts that allow this feature often come with additional fees and higher interest rates compared to the basic loan products.Â
In the fine print of many lenders terms and conditions a lender could refuse a redraw request or ask you for further information on use of the funds. This does not happen often, but can happen. If you want full peace of mind in gaining access to your additional repayments or excess savings, then its best to get an offset feature.Â