A. To suit your needs.
As a client of Indigo Finance, we will conduct a home loan health checkfor you every year. If you’re not yet an Indigo Finance client, please call us. As products change, interest rates fluctuate or your personal circumstances vary, we are happy to help you look at your refinancing options.
Mortgage refinancing reasons: you change
Over time, your personal and financial situation may change. You may get a pay rise, or decide on a sea-change. You might go from a safe corporate salary to the more uncertain income of the self-employed. You might want to start a family, or need to finance their education. As your needs and priorities change, you’ll probably find the right home loan product for you will change, and you’ll need to refinance your mortgage. Indigo Finance will help you find the right refinancing option for you.
Mortgage refinancing reasons: rate rise
In stable economic conditions, a variable interest rate might look more attractive, while in more volatile periods you could prefer the predictability of a fixed interest rate. Refinance your home loan to suit the economic times.
Mortgage refinancing reasons: new products
In the past, there was limited innovation in the mortgage market. But now competition between lenders is fierce and new products are constantly emerging that might suit your situation better. Indigo Finance can keep you up-to-date with new home loan products that might make it worthwhile to refinance your mortgage.
Mortgage refinancing reasons: lower rate
The most common reason for people to refinance their mortgage is to get a better deal. But be careful you don’t become interest rate-fixated. When you refinance your home loan, you need to consider fees and charges as well as the interest rate. You often have to pay charges for exiting your current home loan, plus charges for taking out the new mortgage. You need to be sure that in refinancing your home loan that you’ll be better off in the long run after taking into account all costs.
Mortgage refinancing reasons: debt consolidation
If you’re swamped with credit card debt and personal loans, it can sometimes help to talk to Indigo Finance about debt consolidation. Debt consolidation is where you transfer your credit card debt and any personal loans to your mortgage. The advantage of doing this is that the interest rate on your home loan is likely to be lower than you’re paying on your smaller debts. You might also benefit from a regular manageable repayment.
Mortgage refinancing reasons: more flexibility
Many people only discover the full details about their mortgage when it’s too late. They try to do something and get told by their lender that either they can’t do it, or they will incur a hefty charge if they do. An example is a redraw facility – the ability to pay extra money into a mortgage and then redraw it later. This feature is not possible with a basic home loan so many people refinance their mortgage to give themselves this sort of increased flexibility.
Mortgage refinancing reasons: renovation
If you carry out renovations, it often makes sense to refinance your mortgage and take out a construction loan or a renovation loan. This way you only pay interest as building progresses. Once construction is over, it might make sense to refinance your home loan again so that you consolidate the total amount you owe into a loan that minimises your interest bill, while giving you a degree of liquidity. To find out more about construction loans to suit your renovation plans, contact Indigo Finance – your MFAA registered mortgage broker.
Mortgage refinancing reasons: home equity
Over recent years in the property market houses have appreciated at a significant rate, e.g. a home you bought for $300,000 five years ago might now be worth $500,000. Refinancing your mortgage with a home equity loan might let you tap into that extra $200,000 equity. The funds released can be used for investment purposes or even starting a business.
Mortgage refinancing reasons: defaulting
Some people find they have borrowed more than they can comfortably repay, and they’re in danger of defaulting. There’s no shame in that. But don’t suffer in silence. If you’re having trouble making your mortgage repayments, talk to Indigo Finance about refinancing your home loan to make it more manageable.
Construction loan or renovation loan
With a normal loan, you borrow the whole amount up front – and start paying interest from day one. The advantage of a construction loan or renovation loan is that you only draw down money as you need it to make progress payments. This can significantly reduce your interest payments.