Refinance Your Home Loan

Refinance Home Loan

Managing household cash-flow to ensure you pay mortgage payments on time can be a real challenge for many homeowners. A good way to reduce high mortgage payments is to refinance home loan or investment loan accounts to another lender.

When you choose to refinance your home loan, you may take advantage of other great benefits aside from lower repayments such as:

  • Lower interest rate
  • Longer loan term
  • Lower home loan fees (monthly or annually)
  • Other features that will allow you to manage your cash-flow better such as ‘offset account’

Why Refinance a Home or Investment Loan?

With a refinance home loan package, you can pay out your current home loan by applying for a new loan with a different mortgage provider. This is also known as ‘loan switching’, because you basically switch your existing loan to a new one, which may provide you with better terms and access to lower interest rates. Express Mortgage Market can help you find alternative home loan providers to refinance your home loan.

The most popular reasons Australians choose to refinance home loan or investment loans are:

  • Home improvements and renovations
  • Consolidate debt
  • ‘Cash out’
  • Lower repayments
  • To get a better interest rate
  • Buy a new car
  • purchase another property for investment
  • Switch from a fixed interest rate to a variable interest rate, or the other way around

Pay Off The Mortgage Faster? Could Be Time to Refinance

If your goal is to lower interest charges and general mortgage costs over time then a shorter loan term may be the best way. It almost always makes sense to pay off your home loan faster, because you can save thousands of dollars in the long run. You may think that by decreasing the loan term, you will need to pay a higher monthly payment (placing extra pressure on your household budget for general living expenses) but this is not necessarily the case.

Our mortgage brokers are experts at loan structuring and can develop credit strategies, which may surprise you with the potential benefits available. Here are just some of the options we often recommend:

  • Source an alternative lender with a substantially lower rate
  • Shorten the mortgage term
  • Keep repayments at the same level
  • Explore the benefits of an ‘offset account’ with the Express Mortgage Market Offset Calculator
  • Consider ‘salary sacrificing’ (subject to financial advice) or direct salary credits to the mortgage