Why people refinance their home loans

If your circumstances have changed or you think you can save money by shopping for a better deal it may be time to take a closer look at your home loan. Here are some of the most common reasons why you may decide it's time for a change:

• You could save thousands over the life of the home loan and/or help pay it off sooner.
• May be able to provide extra cash to play with - to renovate or go on a family holiday.
• To invest in other things by accessing the equity in your home.
• Circumstances have changed and your home loan needs to follow suit.
• To save on interest by consolidating other debts into the home loan.
• Lock in a fixed rate to guarantee repayments and help with budgeting.

What to be aware of:

• Underestimating or not considering all the costs involved in refinancing.
• Short term vision that ends up costing more in the long term.
• Those trying to sell you something you don't really need.