When is the best time to refinance my property?

With mortgage rates down at a historic low, it must be a good time to find a new home loan. Right? Not necessarily so. Refinancing is about a whole lot more than just the interest rate – and here’s why.

What does ‘refinancing’ actually mean?

Refinancing means taking out a new loan to replace and pay off your existing loan. It aims to secure a better ongoing rate and save money on the long-term interest. If you’re interested in seeing what the market can offer, jump online and do some research – but make sure you take into account all the small print such as change fees and flexible inclusions. If you focus purely on the interest rate offer, you could end up paying much more in the long term.

Is there a right time to change loans?

Unfortunately, there is no ‘one size fits all’ answer. It’s very dependent on your personal situation as well as what’s going on in the world around. Consider what you want to achieve – it might be consolidation, improved flexibility or simply a restructure to suit your lifestyle. Ultimately the best deal for you will balance out your personal needs, with what the market can offer.

What do I need to consider?

• Interest rates – be mindful that these can fluctuate and are subject to change
• Fees – re-financing comes at a price. Take a deep dive and fully understand the real cost of the change
• Lifestyle changes – whether you might face challenging circumstances such as loss of income, or a job change
• Long-term plans – consider how long you plan to be in your property so that you can reap the financial benefits of the change

Who do I talk to?

Speak with an experienced MoneyQuest finance broker about the next steps. With access to all the latest market information, they can save you valuable time and money in the process.

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