The inevitable interest rate hikes have hit, translating in a spike in refinance applications as many mortgage holders review their options. Lenders are clamouring to win new business so there is no better time to review your home loan to ensure you are optimizing your home loan products.

Mortgage holders often remain in an outdated and less cost-effective home loan product because the thought of refinancing is too overwhelming. It doesn’t have to be when you have an experienced mortgage broker on your team, but apart from that there are some great reasons why now is a great time is to refinance your home loan.

#1 Reduce interest charges

Perhaps the most obvious and compelling reason to refinance is to pay less on your home loan. Depending how long it has been since you last reviewed your rate, the savings could potentially be significant. As rates are moving skyward, it is advisable to mitigate further hikes by securing a cost-effective product sooner rather than later.

#2 Lender rebates and incentives

Many lenders have cashback offers available, some as high as $6K when taking out a new loan with them. These rebates help cover the cost of moving your home loan facility with the likelihood of a portion being left over to use at your discretion once fees are accounted for.

#3 Access other features

The features available with different loan products can vary, so a cheaper loan may in fact also be more appropriate for your current requirements meaning a great rate may also come with increased banking efficiency. A no-frills product may no longer be working in your best financial interest where a home loan package might, and vice versa.

#4 Streamline your debts

A refinance is also a good opportunity to consider consolidating other facilities in your home loan to streamline your finances and reduce your outgoings. Unsecured debts like credit cards and personal loans come with higher interest rates, so rolling them into your home loan is a sound way to reduce your outgoings.

# 5 Unlock equity

As part of a refinance application, you may be able to draw against your equity to reach other goals such as completing home renovations or purchasing an investment property. The current buoyant property market  means valuations are returning strong in many cases and customers can achieve goals now, they previously were unable to when refinancing.

If you have not investigated the benefits of refinancing your home loan recently then you may be doing your finances and your financial future a disservice. Your mortgage broker will be able to advise on what lenders and products are most suitable and how much you are able to save by switching lenders, with the added bonus of the Blackburne Team doing all the heavy lifting along the way. Contact us for more information.