3 ways refinancing your home loan can put money back into your pocket
Refinancing your home loan isn't just about reorganising your finances. It's a way to save money and get access to greater financial freedom.
Sponsored by Unloan. With Unloan, you can get a home loan that rewards you every year. A rate that gets better, with no negotiations needed. Every year you're with Unloan, you'll receive an automatic discount of 0.01% p.a., for up to 30 years.
If you're looking to put more money back into your pocket, refinancing your home loan can be a way to reduce one of your biggest expenses.
1. Reduce your interest rate
Your interest rate is one of the key factors that impact your home loan repayments.
So if you can score a lower interest rate on your home loan, you can potentially reduce your repayments, too.
Unloan offers a low interest rate as the default.
(In fact, if you check out the tables at the bottom of this page, you can see the current interest rate!)
But there's more to it than that.
Unloan also gives customers an annual loyalty discount.
So the longer you stay with Unloan, the more you could save.
Unloan automatically applies a 0.01% p.a. discount every year, up to a maximum of 0.30% p.a. over the life of a 30-year home loan.
So not only can you get a great rate to start with – you can get an even better one over the life of your loan.
2. Debt consolidation
One of the most common reasons people refinance their home loan is to consolidate debt.
This can offer a number of advantages:
- Streamline multiple repayments into one repayment.
- No more juggling multiple interest rates (and the extra expense they can bring)
- Save on account fees (Unloan doesn't charge any!*)
- Improve your credit score long-term
However, refinancing for debt consolidation can have other impacts on your credit in the short term.
So it's worth consulting with a finance professional before refinancing, to see if it suits your circumstances.
You can read more about refinancing for debt consolidation on Unloan's website.
Watch the Unloan Refinance Classic!
3. Better loan features
Another compelling reason for refinancing is getting access to better loan features.
- Reduced (or no) fees
Home loans can come with a plethora of fees.
So if you can find a provider that doesn't charge them (like Unloan!) then you can potentially make big savings.*
That cash can go back into your pocket or into paying off the loan itself.
- Additional repayments
Not every home loan allows for additional repayments.
This means that if your income grows over time – or if you experience a windfall like an inheritance – you may not be able to pay off your loan more quickly.
But when you refinance, you can opt for a home loan that does allow extra repayments.
This can let you pay off the loan more quickly. In turn, this can also help reduce the cost of the loan over time, as you'll be paying less interest.
- Redraw facility
Having a redraw facility attached to your home loan allows you to access funds from your additional repayments.
Maintaining an available redraw balance can help reduce the interest on the overall loan balance.
Unloan offers unlimited free redraw as part of its home loans.
It's a bit different to an offset account. But it can still help you save on the overall costs of your home loan.
Learn more about refinancing with Unloan today
Sponsored by Unloan. With Unloan, you can get a home loan that rewards you every year. A rate that gets better, with no negotiations needed. Every year you're with Unloan, you'll receive an automatic discount of 0.01% p.a., for up to 30 years.
*Unloan does not charge any annual, application, banking, account, transaction, late or exit fees. In certain circumstances, you may be required to pay a Lenders Mortgage Insurance (LMI) premium. Learn more about why this is applied and how it works. Government fees may also apply. Learn more about government fees here. Your current lender may charge an exit fee when refinancing.
Image: @Elnur via Canva.com