Mistakes to avoid when Refinancing your Home Loan
Estimated read time: 2 Minutes
Refinancing your home loan is a big decision. This article covers some of the key mistakes to avoid when refinancing, to help guide you towards a more well-informed decision.
Mistake #1: Focusing only on the dollar savings
The overall cost of refinancing is an important consideration when deciding whether to switch lenders.
When refinancing your home loan, it’s possible that your cashflow may improve monthly, but what can often be overlooked is that the total cost of the loan may be higher due to a longer loan term, for example, or the fees involved in switching your home loan.
By calculating the long-term costs involved, you can make a more informed decision about whether refinancing is a good idea for you.
Mistake #2: Not checking your credit report
Mistake #3: Thinking short-term
Mistake #4: Not looking at the bigger picture
Mistake #5: Taking the first offer
Mistake #6: Doing it all yourself
Looking to refinance your home loan? We're here to help.
Want your home loan to work harder for you? There could be an opportunity to improve your financial situation by switching products or lenders, you might want to think about refinancing. Our video answers the key questions around the process of refinancing.
Our team of lending specialists are here to help you understand your options when refinancing your home loan to Pepper Money. Simply give us a call on 137 377, or get started by trying our online borrowing power calculator.
Want to find out where you stand?
Need some help with your refinancing?
There's a lot refinancing can do; from unlocking your equity to consolidating debts in to your home loan.
Some great resources are here to help you understand your options.
Information provided is factual information only and is not intended to imply any recommendation about any financial product(s) or constitute tax advice. If you require financial or tax advice you should consult a licensed financial or tax adviser.
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The results of the borrowing power calculator are based on information you have provided and is to be used as a guide only. The output of the calculator is subject to the assumptions provided in the calculator (see 'about this calculator') and are subject to change. It does not constitute a quote, pre-qualification, approval for credit or an offer for credit and you should not enter commitments based on it. The interest rates do not reflect true interest rates and the formula used for the purpose of calculating estimated borrowing power is based on the assumption that interest rates remain constant for the chosen loan term. Your borrowing power amount will be different if a full application is submitted and we complete responsible lending assessment. The results in the calculator do not take into account loan setup or establishment fees nor government, statutory or lenders fees, which may be applicable from time to time. Calculator by Widgetworks.
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