12 Days of Holiday Offers: Get as many as 50 free offset accounts with Up
If you're looking to refinance before the end of 2023, why not check out the loan features that Up has to offer?
Sponsored by Up. Upgrade your home loan features! Apply to refinance or for a new home loan with Up today, and you can score up to 50 free offset accounts.
The 12 days of Holiday Offers are here at Finder! Today, for day 6, we're taking a look at home loans. We've got a great offer from Up – as well as some tips on things to consider when you're planning to refinance your home loan.
4 things to consider when you're planning to refinance your home loan
Thinking about refinancing before the end of 2023? There are a few points to think about first.
1. Look closely at the extra features included
One reason to consider refinancing is to add extra features to your loan. Unlimited repayments, redraw facilities and lines of credit are just a few examples.
A popular loan feature is an offset account. The balance in your offset account is linked to your mortgage, enabling you to cut down on the interest you pay.
However, some lenders enable you to have multiple offset accounts. This can be useful for saving towards a range of different goals, without needing to cut into your home loan balance. It also means you can keep all of your funds in the same place, without needing to overcomplicate funds across multiple financial institutions.
As an example, Up allows you to have up to 50 offset accounts, with no fees required.
2. Decide between a fixed or variable interest rate
You'll need to decide whether to opt for a fixed or variable interest rate. Fixed rates remain set for a specific period of time, usually 1–5 years. Conversely, variable rates fluctuate with the wider cash rate.
Both fixed and variable rates have their advantages. It's more about what's right for your particular circumstances.
As one example of a fixed rate, Up is currently offering fixed interest rates at 6.15%.
Get a fresh start on your home loan for the new year. Apply to refinance your existing home loan home loan with Up today, lock in a great rate and get yourself as many as 50 free offset accounts! Available to refinancers and new borrowers. T&Cs apply.
3. Your future borrowing plans
Refinancing can be a good way to save money in the long term and set yourself up for better financial success. However, it's also important to remember that it can affect your credit rating and impact your future borrowing capacity.
It won't be forever, of course – paying back a refinanced loan will gradually restore your credit rating over time. But before refinancing, make sure that you weigh up future plans versus saving in the present.
4. Make sure you're saving money overall
The primary purpose of refinancing is to save cash. So it's important to take a close look at whether you will actually be saving money if you chose to refinance.
Factors like loan application fees, exit fees, loan maintenance fees, account fees, interest rates and more all need to be considered. Make sure you calculate these expenses in detail before proceeding – possibly with a financial professional.
After all, you don't want to go through the work of refinancing only to find out you're paying the same – or even more – than you were before.
Learn more about refinancing and home loans with Up today
Don't miss out on our 12 Days of Holiday Offers! Explore all of them today Image: @Obradovic via Canva.com