Refinancing: This means that you switch your current loan from one lender to another; this might be to save interest, to access equity or to get better features on your loan and have it work better for you.
Its very important to look at your loan every few years and consider refinancing if you can make a considerable saving by doing so. The industry moves very quickly and lenders are often competing for your business. This wont damage your credit rating and just imagine what you could do with the savings!
It’s a simple thing for your broker to check whether you could save money refinancing – and a good broker will give you tips on how to save your money with your current lender first knowing that this is your cheapest option.
Now, it’s not always worth moving lenders, there are costs involved in doing so, so I would recommend if you’re not going to save more than double your costs in doing so in the first year – then consider asking your broker to renegotiate with your current lender, or, I think there’s likely a time when refinancing will make sense, or you will incur at least some of the costs because you have to (for example, because you want to increase your loan), so wait until this time and make the most of your savings.