If your personal situation or market conditions have changed since you first took out a home loan, it might be time to review your home loan and make sure it’s still meeting your needs. People refinance their home loan because the new loan gives them a loan that is better suited for their circumstances. Which could be a better home loan product, debt consolidation or accessing equity.

 

Depending on what works best for you and what offers are available, you can choose to refinance your home loan with your current lender or switch to a new lender.

 

When you refinance a home loan, it means taking out a new home loan to replace your current home loan. Your current home loan is paid out by the new loan and you make repayments towards the new loan.

 

5 steps to refinancing your home loan:

1. Review your current home loan

2. Compare home loans including exit fees and borrowing costs.

3. Apply for a new home loan

4. Sign your new home loan contract

5. Await settlement