People refinance their loans for a variety of reasons. Some do it to take advantage of lower rates, others to pay off their loan sooner, while there are those who wish to renovate their property.
Since you're reading this article, chances are that you're looking to refinance your own loan. The great thing is that lenders offer various types of home loans to meet the different needs of individuals. In this article, we will share some of these options with you so you can find one that might address your very specific requirements. Let's start with...
- Construction/Renovation Loan. As the name suggests, this type of home loan is geared towards people who are building or renovating their property. The beauty of this option is that it makes it easy for the borrower to make repayments on the loan. The borrower can draw money by parts depending on the needs and the stage of the project, thereby reducing repayments on interest.
- Bridging Loan. This loan is designed for people who wish to acquire a new property while waiting to sell their old one. While a bridging loan usually has higher interest rates than regular loans, the borrower can always switch to a better one after the old property has been sold.
- Line of Credit/Equity Loan. A line of credit provides you with a specific amount that you can borrow from a lender, which you can withdraw all at once or in smaller amounts. Meanwhile, an equity loan provides even more flexibility. The downside, however, is that it typically comes with higher interest rates as compared to regular types of loans.
- All in One Account. If you're tired of paying off your mortgage and other financial obligations separately, then this option is for you. What it does is consolidate your debts under one roof, which can lower your total repayments. The only thing you need to be aware of is that consolidating your loans might lengthen the term of all your debts, including those you could have paid off in a shorter time.
Some of these features may not be available from your lender of choice. It is therefore important that you ask them about the refinancing options first, or seek the help of your trusted mortgage broker.
But when it comes to choosing the right home loan for you, we recommend that you contact our qualified advisors at Rate Detective. They can help you a better deal or even shorten your term, as well as provide you with rate comparisons from Australia's top lender. Contact us today!