1. Make sure it’s a good time and act fast.
You may be ready to refinance and get out of the bank institution you’re using for your loan due to many circumstances. However, there is no point in doing so if interest rates are high, you may end up being worse off. As interest rates are forever changing it is best to hold out until interest rates and terms are at a beneficial rate for you and your loan needs. Once the rates are at a percentage you are happy with it’s time to act very quickly before they change again.
If you are thinking of refinancing in the future, talk to one of our brokers and they will be happy to notify you when there are interest rates to suit you.
2. Maintain your credit score.
Although you were approved for your home loan in the past, doesn’t mean that you will be approved this time around. Make sure your home loan repayments are paid on time and never missed, and this includes all payments. If this has not been the case, your credit score may have been affected.
Are you interested in finding out your credit score and tips on how to improve or keep your score where it is? We will provide some links below for your benefit:
3. Consider consolidating debt.
* Refinancing isn’t just about changing bank institutions to save money- it can also involve putting all of your debt into one loan. For example, you could have a car loan, a personal loan a mortgage and a credit card, all of which you are paying off month-by-month with separate interest rates. By consolidating your debt you are able to put all of your debt into one loan, meaning you are only paying repayment a month with only one interest rate instead of four.
Consolidating debt is a great way to save money and manage your repayments.
4. Are you really better off- work out how much you’re saving.
* The primary reason to refinance is to get out of your bank institution because of two reasons. Either you are paying too much interest and your repayments are too high or secondly because you have outgrown your loan and the terms and conditions no longer meet your expectations. When deciding to refinance, you need to work out if it is really worth refinancing and how much you will be saving.
* Secondly, you need to be aware of hidden costs when pulling out of a loan early.
At the end of the day, we are here to save you money.