Thanks to the rise of consumer convenience and home loan options, creating a more accessible experience of repaying a mortgage has never been easier than it is today. Australian homeowners now have an abundance of opportunities for easy repayment experiences by seeking other plans, financing opportunities, and loan tweaks.
Over time, however, consumers have become smarter in terms of sifting through all the different tools and plans by determining which ones work best. As a result, this development has led to an assortment of questions that homeowners find themselves asking today at every turn of the homeownership experience and every due date.
Out of all the different questions that you may find yourself asking as you continue to repay your mortgage, there’s one that you’ll probably ask the most: “Should I refinance my loan or apply for a new mortgage?”
The prominence of refinancing and seeking new mortgages
Seeing that consumers continuously strive for more convenient experience in various parts and processes in their lives, it’s easy to see why banks and lenders have adjusted to retain customers amid increasing demand. This is the main reason companies ended up developing refinancing and new mortgage application systems because of the desire to create easier experiences for buyers.
Although they may sound like they work the same, the truth about seeking a new lender and increasing a mortgage to ease up payment is that they’re two completely different aspects. This is why it’s vital to choose your options wisely.
Seeking a more convenient experience? Here’s what to consider
When it comes to answering the question mentioned above, it’s vital to know that there’s no “definite” solution that applies to every homeowner because picking is a relative effort. If you want to ease up your repayment experience with an option that best suits your needs, here are three different factors you need to consider in further detail:
Factor #1: Your current home loan in comparison with others
Before you select a particular alternative and go for it, it’s vital to compare your home loan and other options on the market to figure out which choice is best in the long run.
The main reason a comparison is vital is that various options have different price points and terms that may improve your experience, give off the same result, or deliver a worse result entirely. By comparing the options, you can understand if other alternatives are worth seeking a new mortgage for or if you’re better off asking for a refinance on your current loan!
Factor #2: Your current home loan
Another factor to consider when it comes to deliberating a refinance or new mortgage is the pre-existing home loan deal itself. When you take the time to explore your home loan’s features further, you’ll have a strong reference point that will help you establish clear lines to determine whether or not a heavily-advertised opportunity works!
Factor #3: Expert opinions
When it comes to successfully deliberating between getting a refinance on your home loan or seeking a new one entirely, it’s vital to remember that there are three sides to the story:
- What you think is best for you
- What a lender thinks is best for you (which will be their product or service)
- What an unbiased expert thinks and knows is best for your needs
Having an objective mindset and making sure that you don’t get caught up on sales talk when deliberating between the questions above is critical because you need a better option. With the help of an unbiased expert—such as Finance Corp—you can be pointed in the right direction and choose between refinancing and a new mortgage without compromising!
Deliberating between a home loan refinance or getting a new mortgage entirely is an unavoidable step that you’ll run into during the experience of homeownership. This means it matters what you come prepared. With the help of this guide and the three factors mentioned earlier, you’ll ensure that your best interest is kept to heart by having a greater level of insight into what works and doesn’t work for your needs!
Are you looking to take out a home loan in Perth but need the help of a financial advisor to make sure that you’re making the right decisions? Our finance managers are fully qualified, trained, and experienced mortgage professionals who live and breathe finance. Get in touch with us today to see how we can help!