Here are some key factors to consider when choosing a home loan refinancing option in Australia:
- Interest rates: One of the most important factors to consider when refinancing your home loan is the interest rate. Look for an option that offers a lower interest rate than your current loan, which can help you save money over the life of your mortgage.
- Fees and charges: Be sure to carefully review the fees and charges associated with each refinancing option you’re considering. Some lenders may charge application fees, valuation fees, and other charges that can add up quickly.
- Loan features: Consider what features are most important to you, such as the ability to make extra repayments, the option to redraw funds, or the ability to split your loan into different products. Look for an option that offers the features you need to manage your mortgage effectively.
- Loan term: Think about the length of the loan term that will work best for you. A shorter loan term will generally mean higher repayments, but can help you pay off your mortgage faster and save on interest charges.
- Lender reputation: Look for a reputable lender with a strong track record of customer service and competitive products. Read reviews and ask for recommendations from friends and family to find a lender that you can trust.
- Your credit score: Your credit score will play a key role in determining your eligibility for a home loan refinancing option. Check your credit score before applying, and take steps to improve it if necessary.