Refinancing to help with mortgage payments

If you are feeling the budget pinch and need some help with your mortgage repayments, then refinancing may be an option to help.

As with any financial decision you should always consult with your financial advisors and be sure to do your homework and shop around.

As published by realestate.com on 17 August 2023 here are 5 tips that may help you:

1. Lowering monthly payments – you might be able to get a better package with more competitive terms;
2. Accessing more competitive rates – this may save you thousands of dollars over the term of your loan;
3. Consolidating debts – by combining all your debts into one loan, you can convert higher interest loans, such as credit cards and car loans, into your mortgage on a lower interest, and with only one payment;
4. Changing loan terms – If you are feeling the pinch now, you might opt to lengthen the term of your loan to decrease repayments. Alternatively you might change from a variable interest rate to a fixed interest rate so that you have certainty around your loan repayments.
5. Accessing home equity – If you are in front of your repayment or your house has increased in value (which almost everyone’s has in the last few years) or if you need money to do renovations then refinancing and accessing some of your equity might allow you to unlock some money and benefit from the lower interest rates for home loans, as opposed to other higher interest loans.

As with anything you should always seek professional advice and try to prioritise what your goals in life are!