Refinance, means replace the loan to a new lender or change the loan structure with the previous lender. It has couple of advantages.
Firstly, lower interest will apply. Most of the time, a better rate is the main reason for refinance. Just a simple action, then can save thousands of dollars, and improve the monthly cash flow, why not do so?
Secondly, refinance can assist the client to re-value the property, and has a chance to cashout from the gained equity to invest into the next investment property. Therefore, the borrowing capacity can be fully utilized to build up the investment portfolio. In some cases, even no deposit is required to purchase the next investment property.
Lastly, All the banks have different cashback campaign occasionally, the offer is normally between $2,000-$4,000, sometimes even higher. The cash rebate can fully cover the cost occured during the refinance. And give a chance to review the home loan status and restructure the home loan.
This is refinance, if you haven’t check your home loan for quite a while, or if you are still paying interest rate more than 3%, it’s time to take a review of your home loan and feel free to reach out to our loan consultant for more information.
