If you’re behind on mortgage repayments, refinancing may help reduce your monthly costs. In some cases, refinancing may reduce missed payments, which could help limit future credit file impacts. As an authorised broker for over 35 lenders, including the Commonwealth Bank, National Australia Bank, ANZ and Westpac, we can help you explore whether consolidating debt into your mortgage is an appropriate option for your circumstances.
How It Works
Mortgage refinancing involves replacing your current loan with a new one — which can help simplify repayments, but may also increase long-term costs. Because mortgage rates are generally lower than credit cards and personal loans, they can be used to cover all types of debts effectively. However, while mortgages generally attract a lower interest rate, paying off your consolidated debts will likely take longer (an average mortgage is typically 25–30 years).
Benefits of Mortgage Refinancing
There can be a number of benefits to refinancing your mortgage, including:
- Repaying your mortgage (and other loans faster)
- Saving money on interest – this is the most common reason people refinance their mortgage. Achieving a lower interest rate on debt or an existing mortgage is a serious perk
- Unlocking the equity in your home – equity is the difference between the amount you owe on your house and its value. If you want to ‘unlock’ this equity, you can do so with a mortgage refinance.
