If you’ve fallen behind on your mortgage, there are options to help you take control of your finances and move forward. Aside from saving money, mortgage refinancing may help you protect your credit rating too. As an authorised broker for over 35 lenders, including the Commonwealth Bank, National Australia Bank, ANZ and Westpac, we can help you decide the best way to consolidate your debt with a mortgage refinancing plan that works for your specific needs.
How It Works
A mortgage refinance is simple. It’s the process of consolidating your debts under a single payment with a new mortgage. 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.