Make your mortgage work harder by refinancing

There are many reasons to consider debt consolidation or refinancing your mortgage, and it's always a good idea to have regular assessments with an expert as your life and circumstances change.

From our experience some of the main reasons people want to refinance include:

  • Needing a bigger home as your family grows
  • Renovating or adding value to your existing home such as with a new kitchen or bathroom
  • Building a new home
  • Getting a better interest and deal from another lender.

Using your home's equity to:

  • Buy a business or an investment property
  • Help one of your children buy their first home
  • Maybe even do something fun like go on a world trip.

Whatever the reason, if your circumstances change and you need to make use of the value in your existing home, Taurus Home Loans can help.

To fix or not to fix, that is the question

No one has a crystal ball for interest rates so it can be difficult to make a choice between fixing or floating your mortgage.

Some will prefer the flexibility of a floating rate, meaning you can make additional payments to your loan and reduce it quicker.  Others will want the comfort of knowing exactly how much is being paid off each month by fixing.

One good option is a mixed approach, or having a variety of mortgages at different rates and terms, and spread over fixed rates and floating.  This can provide the best of both worlds by hedging.

This means you will still have surety about how much you pay each month, except for the floating portion and even if interest rates rise it will only affect part of your loan.

Our experts can help you choose the best option for your situation and find the right lender.

A revolving credit mortgage 

This is a good way of saving money and paying off your mortgage quicker but it’s only for people who can stick to a budget. 

This mortgage turns your home loan debt into a bank overdraft.  Your pay is then credited against this overdraft to reduce the debt each month.  By using a credit card to pay for any purchases the debt stays low. 

If you then pay your credit card and mortgage repayments on one day each month, followed by your pay going into your account the next day, your debt stays lower for longer, reducing the amount of interest you pay in the process. 

It works, as long as you pay your credit card off every month and avoid using your mortgage as a loan facility.

This structure has different names depending on the lender and only operates with floating rates.  Taurus Home Loans can help to set this up if it suits your needs and you meet the criteria.

Get in touch with us if you have any questions about how refinancing your mortgage can work for you.

FAQ's

What are the reasons to refinance?

There are many reasons most of which relate to changes in people’s circumstances, for instance you may:

  • Need a larger house as your family expands or downsize later in life
  • Want to renovate your existing house or build a new one
  • Feel you can get a better deal with another bank
  • Want to restructure your existing loans
  • Be unhappy with your current lender and want a change
  • Need to manage a break in a relationship or marriage

Whatever the reason, we can help you assess the refinancing pros and cons.

What is the refinance process?

It’s always a good idea to have an annual discussion with us about your mortgage and whether refinancing will benefit you.  After considering your existing mortgage we look at options and respond with a recommendation.  If you go ahead, the whole process can take about a month.  There will be some legal costs but some banks provide incentives to cover this.  If you’re thinking about refinancing come and talk to us.    

Get the low down on refinancing

There are many reasons to refinance and if you want to talk about your options, please leave your details below and we’ll contact you within two business days.