START HERE
Get a free car loan eligibility assessment and compare offers tailored specifically to your circumstances.
Loan Amount:
$
Postcode:
All finance quotes are provided free (via our secure server) and without obligation. We respect your privacy.
Any Purpose
New car purchase
Used car buyers
Refinancing
Private sale
Dealer purchase
Any Situation
Refused by Banks
Self-employed
Bad Credit History
Low/No Deposit
No Savings History
Ex-bankrupt
All Features
Secured Car Loans
Unsecured Finance
Vehicle Leasing
Hire Purchase
Chattel Mortgage
Major Banks
Non-bank Lenders
Lo/No-doc Loans
Knowledgebase
Personal Loan:
a loan that is granted for personal use, normally unsecured and granted by a lender on the borrower's integrity and capacity to repay
Car Loans Australia :: Articles

Car Loans Australia Articles

Home Loans: Is now the right time to refinance?

You could very well be right, but there are some things you can do to help decide whether it's time to refinance your mortgage.

The first thing you need to verify is the interest rate for your existing mortgage - and the interest rates being offered across the board for new loans. 

If there's not at least a one and a half to two point difference, you're probably not going to be significantly better off to refinance your mortgage. 

Here's why.

Remember those costs on your initial mortgage? 

You probably paid for a valuation, perhaps a building expection, lenders fees ... not to mention stamp duty!

Depending on how long it's been since your original loan, you may be faced with having those processes repeated. 

Especially if you are going with another lender, have had the existing mortgage for at least two years, have made major modifications to your home or property, or have seen some significant variations in property values in your area, you're probably going to be required to have a new valuation at the very least. 

Remember, it's important to take these costs into consideration when comparing the amount you're going to save on a slight drop in interest rates ... it may  take many months ... or even years to recoup those expenses. 

Don't forget that you'll likely have some additional costs from the lender on the new mortgage (you are, after all, taking out a new mortgage even though you have an existing loan) and, in some cases, you may even be facing penalties for paying off your existing loan early. 

Weigh those costs against what you expect to save before you take this step.

So, does that mean that you should never refinance an existing mortgage? 

Actually, there are plenty of opportunities when refinancing your mortgage makes good financial sense.

If you've significantly increased the value of your home or have been paying for several years, you may have enough equity to qualify for a better interest rate. 

You may also lower monthly payments or refinance to make improvements. 

In the end, it's up to you to weigh the costs of refinancing your mortgage and decide if the time is right for you to take this step.

We have provided for your assistance a free mortgage refinance calculator to help you do the sums.

We can also provide you with a free home loan refinance assessment. Just visit our home loans page.


Finance Articles

Credit Cards: Identity Theft and Credit Protection
Credit card fraud and identity theft have become widespread not only on the Internet but offline as well. Learn how to avoid these risks and protect your identity... read more

Finding the Right Home Mortgage Loan
With over 3000 home loans on the Australian market it would be easy to dismiss them as marketing overkill – and you'd probably be right. But many of these loans... read more

See why the best mortgage is a simple mortgage
Mortgages come with many options. Do you need them all? Most probably not. Keep the mortgage very simple and know when to take on extra options. read more


Finance News

Personal Loans to help Australians in need: FSO
Oct 29 :: As Australia prepares to clean up following devastating fires and floods, Financial Services Online CEO, Andrew Clark, has announced a package of personal finance... read more

Small business loans to help Aussie businesses through tough times
Nov 27 :: Financial Services Online has today announced a new credit facility for Australian business customers who are seeking loans for amounts of up to $10,000 with minimum... read more

Police issue warning about bank scam
Nov 20 :: Melbourne police are warning people about a scam in which fraudsters pose as bankers and ask for money.They say they cold call customers and tell them they... read more