Guide to Refinance Home Loan and Get Better Terms
Purchasing a property is a huge commitment. It involves a huge amount of money, and not everyone can afford to pay in one go. Typically, homebuyers take out loans to pay off their newly purchased home. Meanwhile, for those who already have existing home loans but want to revise the terms, home refinancing is an excellent option.
Getting a home loan approved is not easy, with all the requirements and documents you need to submit. That is why at FinHub Solutions, we recommend getting the guidance of experienced home loan specialists. Whether you are looking for help with a mortgage refinance or getting a new loan altogether, your trusted financial advisers at FinHub are here to help.
What are the Common Types of Home Loans
There are various types of home loans in Australia, depending on the borrower’s capability to make repayments.
Here are some of the most common home loan types you would encounter:
This loan is granted to borrowers who are buying a new property but have existing properties they are planning to sell. The bridging loan will usually give the borrower up to 6 months to sell the property, after which the borrower should pay back the loan to the lender. Bridging loans are designed to help individuals transition to their new homes even if they haven’t finalised the sale of their existing property yet.
Fixed and Variable Home Loans
The interest rate and amount of the repayments will depend on what type of home loan you will choose to get.
A fixed-rate home loan helps a borrower lock in the interest rate, meaning the lender cannot make repayment adjustments even with interest fluctuations. On the other hand, variable home loans are more flexible. Borrowers may have the option to redraw and make extra payments, but repayments may be altered depending on interest rate changes.
Usually, a fixed-rate home loan has higher interest and repayment compared to a variable home loan.
This type of loan allows borrowers to have a fund for payments throughout the whole process of construction. While a regular home loan is usually a lump sum fund, a construction loan will enable borrowers to withdraw what they need from the loan balance.
What to Know About Home Refinancing
In home refinancing, borrowers will be paying off an existing home loan and replacing it with a new one under new terms. Some of the features of mortgage refinance include lower interest rates, shorter mortgage terms, and converting adjustable-rate mortgage to fixed-rate mortgage.
Those with existing loans who would like to get a better deal for their mortgage can immensely benefit from home refinancing. However, before deciding to do a refinance home loan, it is recommended that people approach their local loan specialists for advice. Let FinHub Solutions Help You with Your Home Loan.
From new property loans to mortgage refinance, you have many options to choose from when it comes to dealing with home loans. To have a better grasp on home loans and how you can take advantage of mortgage refinance strategies, approaching specialists from FinHub Solutions is the way to go. Contact us now to know more about home loans!
Learn How Much to Borrow and Deposit
with FinHub Solutions’ Home Loan Calculator
With help from FinHub’s home mortgage calculator, borrowers can have a better idea on the maximum amount they can borrow depending on their income, number of dependents, credit cards, and the property’s value, among others. In addition, they can also check how much deposit they need to pay for the loan to push through.
If you are keen on finding out how much home loan you can take, we invite you to use our mortgage loan calculator. Simply fill out the details in the home loan calculator, and it’ll let you know approximately how much your mortgage will be.
If you have other questions regarding home loans or how we use our mortgage loan calculator, do not hesitate to reach out to us!
Let FinHub Solutions Help You Get Started on Your Business Loans.
Getting approved for a business loan can be challenging, especially if you have no prior experience in applying for it before. However, if you apply for the right type of business loan, you are sure to get a higher chance of being approved. Apply for business loan options without worry.
To know more about business loans, as well as the advantages and disadvantages of each, contact your trusted financial specialist at FinHub Solutions.
Wether you need refinance or new loan, we will get you the best deal.
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We can help you set up SMSF and get propert investment loan.
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