Nervous homeowners are again hitting the refinancing line for fears interest rates will rise further. According to the latest data from mortgage broker Australian Finance Group (AFG), almost two out of five mortgages (38.2%) arranged in February were for refinancing –hitting an all-time high as property owners seek better deals or lock in interest rates.
As a general rule, it’s worth switching if you can get a mortgage that is at least 2% lower. However, every situation is different so you need to carefully weigh up the cost of refinancing. This also includes looking at how much lower your monthly repayments will be under the new mortgage and how long do you plan to hold on to this new mortgage.
Check out the latest issue of Your Mortgage Magazine for your comprehensive guide to smart refinancing.
It can be confusing to know whether to get a variable rate or fixed rate mortgage, and what features are important. That's why it's important to not only check the right rates, but make sure that you're getting the right features in your home loan. Get help choosing the right home loan