What to first consider

When refinancing CAN make sense

  • Your lender’s rate isn’t staying competitive with others in the market
  • A major change occurs in your financial situation
  • You are looking for more money to pay for home renovations, a child’s education costs, or invest in another property
  • Switching to a fixed rate at an opportune time
  • You’ve started to see large credit card debts and want to consolidate
  • When it might NOT make sense
  • You might not own the property for much longer
  • Prepayment penalties are high on exiting home loan
  • Since your previous loan your credit history has taken a hit due to outstanding debts, making it less likely you’ll get a good rate
  • You’ve got an uncertain income over the period of the loan, such as work as a freelancer
  • Your loan balance is low and you’re not thinking of redrawing on available equity
  • Before refinancing, a borrower should consider their circumstances over the next three years. You should ask yourself whether flexibility, a lower rate, lower fees or debt consolidation is the goal.