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 | To take advantage of reduced prevailing interest rate in market |
| To take advantage of current improved credit rating of borrower which may help to obtain new mortgage at a reduced interest rate |
| By changing type of mortgage e.g. from variable to fixed rate or vice versa, option to increase repayments etc. |
| By changing to new mortgage loan with reduced fees |
| One may like to draw on the equity built up in their property to get cash for a new car, new property or for children's education. |
| To take advantage of more interest deductions on renewed loan (consult your tax professional) |
| Reduced income in business? Lost your job? Vacancy rate is high on your investment property? Cost of living has gone up? Interest rates have increased? One or more of these factors may force you to reduce regular repayments. If you have already repaid many instalments, you can try to refinance for the same period or extended period to reduce your monthly repayments. For Example, one has to pay a monthly instalment of $ 1673 for a standard Principal & Interest loan of $ 200000 at 8% for 20 years. Whereas for a similar loan of $ 150000 at 8% for 30 years the monthly instalment shall reduce to $ 1101. |
Compare all costs of your current mortgage (settlement costs including deferred costs) and a new mortgage (including application, re-valuation etc.) and savings in interest over a future period. This period should be your best guess as to how long you will have the new mortgage. If the total costs are lower with the new mortgage, you may consider refinance.
Refinancing may becomes worth your while if the current interest rate on your mortgage is higher than the prevailing market rate
We can search for the available loans in the market which may help you in the long run. To allow us to do the same or know more, please contact us.
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