Many of us have had the same loan with the same lender for many years. In the current low interest rate environment there has never been a better time to review your loans to make sure you are getting value for your money.
Shopping around to refinance or consolidate your home, personal or business loan is a great
idea. Refinancing your loan can potentially bring you substantial savings and benefits.
To decide if refinancing is right for you, a good place to start is to assess the possible benefits from refinancing by answering some important questions:
• Is the interest rate competitive?
• What fees are attached to the loan?
• What are the costs involved with refinancing my loan?
• Will refinancing be of financial benefit in the long term?
• Am I happy with the service provided by my current lender
• Do the features of the loan meet my current needs?
How does refinancing work?
It’s very easy, you simply apply for a new loan and use all or part of the funds to payout your existing loan.
Why would you refinance your current loan?
Most people refinance for one or more of the following reasons:
• To get a better interest rate
• To borrow extra money to renovate their home or other worthwhile purpose such as buying a new car or taking a holiday
• To consolidate debts by rolling them into a single loan at a reduced interest rate
• Switching to a loan that better suits current needs and circumstances
How do you start the refinancing process?
Decide on what you would like to achieve by refinancing. It could be to reduce your repayments, consolidate debts, borrow more funds to renovate your home, or a combination of all three. Once you decide what you want to achieve, make time to talk to an experienced lender who can guide you through the process to make sure you end up with a loan best suited to your needs.
Southern Cross Credit Union has been serving the financial needs of the Northern Rivers community for more than 50 years.
To organise a review of your loans, call me on 0422 589 469.
Any advice given is of a general nature only and is not based on any
consideration of your objectives, financial situation and needs