The advantages of refinancing your debts

Refinancing a loan or a range of debts has several advantages and is often a more practical way of managing you financial obligations, especially if you find you are not managing in your current situation. Refinancing allows you to:

Extend you repayment time

Reduce your monthly payments

Reduce compiled interest rates

Improve your overall cash flow

Potential costs and risks of refinancing

There are some risks involved in refinancing that are worth noting. Refinancing an existing loan comes with many fees and charges. These include:

Application, establishment and handling fees when applying for your new loan.

Early settlement fees on your existing loan. Many fixed rate loans have significant penalties for early repayment.

Valuation fees; still required by some lenders.

Mortgage insurance. Required by many lenders if the loan is more than 80% of the property value.

Discharge fees on your existing mortgage and registration fees on your new one.

Many people also get caught out with the hidden cost of additional interest payments. If you only have ten years left to pay on your existing home loan and you refinance, taking out a twenty year loan instead, don't forget to consider the additional interest that will be charged over the extra ten year period your new loan runs for. These additional amounts can soon add up.

It is always a good idea to assess your situation first to make sure that refinancing is going to benefit you.

Why refinance?
What will my repayments be?
Make an appointment