What Is Refinancing – Home Loan Refinance Explained (Australia)

Sarah: What is home loan refinancing and how
is it going to benefit you? In this video, we’re going to tell you the
basics, and the five best ways that it’s going to help improve your financial situation. Sarah: Hi, guys, it’s Sarah. Here at Lendi we’ve helped thousands of Australians
refinance their home loans and get into a better financial situation. Before we start, though, if you would like
additional tips on home loan refinancing, and you’re in Australia, please remember to
subscribe to our channel. You can also hit the bell and get notifications
when we upload new videos. Sarah: What is refinancing? Refinancing means replacing your existing
loan with a new one that can be to a new lender or updating your terms with your current lender. Typically, most people choose to refinance
their loan to get a better interest rate and reduce their payments. Why do homeowners refinance? Some savvy borrowers are on the lookout for
a better rate or a better product, and other people are needing additional cashflow due
to circumstances, like employment changes or growing families. Sarah: What are the benefits of refinancing? The goal is to get a home loan to better suit
your needs. Number one, reduce your repayments. This is the most common reason that people
refinance their home loans. Interest rate change all the time, so it’s
important to shop around and check that you’re on the most competitive rate. Number two, paying off your loan sooner. The Australian dream is to own your home outright
and you can do that by making extra repayments, which is easier if you’re on a lower interest
rate. Sarah: Number three, accessing equity or better
known as getting cash out. There are a few reasons why you might want
to get cash out. You might want to do some renovations, you
might want to go on a holiday, or you might want to buy another investment property. Lenders will typically allow you to borrow
up to 80% of the property value. It is important to note though that by doing
this, you will increase your loan term and ultimately, it can take longer to pay off
your loan in full. Number four, consolidating debt. Why pay more interest if you don’t need to,
right? If you’re paying high interest on things like
credit cards, personal loans, and car loans, you can actually roll this into your home
loan and reduce the total amount of interest that you pay back to the lender. Sarah: Lastly, number five, to access extra
features or change your loan terms. If you’re wanting to refinance to get a new
offset account or maybe you wanted a redraw facility to be able to make extra repayments,
there’s some other options as well, such as switching to a fixed rate or perhaps you’re
wanting to move to principle and interest from interest only or vice versa. Sarah: That’s it, guys. All the ways of refinancing your home loan
can help with your financial situation. If you found this video helpful, please give
us a thumbs up. If you have any questions, leave them in the
comments box below. Now, if you’re looking to refinance and want
to explore your options, please jump online to our home loan platform at Lendi.com.au. You can also join our private Facebook group,
Home Loan Hacks Australia, where we give you useful tips and answer any questions that
you have about all things home loans. Last thing, if you want any more information about
how to refinance your home loan, you can check out this video here.

2 comments on “What Is Refinancing – Home Loan Refinance Explained (Australia)”

  1. Lendi says:

    Thanks for watching! Is there any reason that would make you hesitant to refinance your home loan? Please let us know in the comments below 😊

  2. Alberto Gorgioski says:

    Great video!

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