If you need a way to strengthen your position, consider refinancing. Refinancing can help improve your property or mortgage repayments.
It may seem unpalatable for some, but consider the reality of life. What is easy to handle now may be much more challenging in the future. Your circumstances today may change, render a prior agreement less appropriate, perhaps even a disadvantage.
Refinancing is the process that lets you change from one home loan structure to another. This can help you adjust to a faster or more flexible strategy, helping you adapt to changes in your life. It also reduces the chances of you punishing yourself financially with an earlier agreement.
Here are some ways you can strengthen your position with refinancing:
It helps secure a better interest rate. Refinancing your mortgage to a fixed rate could be an effective strategy. This is particularly the case for borrowers seeking certainty on their payments.
Refinancing can consolidate your debt. If you have unsecured debt on the horizon, which can include credit cards, refinancing them is an option. Tying them to your mortgage can help make managing all of it easier logistically, as well as ease the interest payments.
You can also unlock equity in your home through refinancing. If you are looking to purchase an investment property without waiting years for a large cash deposit, this can help. Refinancing gives you the funds to act on that investment right now. You can also use that money to value-add with renovations.
However, please remember there is a cost to refinancing. Switching home loans can involve things like break fees, new application fees, and legal fees. You may also need to pay for mortgage insurance.
If you are interested in strengthening your position through refinancing, call us. Our experts will work with you to understand the situation and make a recommendation on what move would be best.