What does refinance a loan mean?
To refinance a loan means (often) to switch provider or lender in order to get a better interest rate and save money.
This works because loan products change and if your loan is more than 2 years old there’s almost certainly a newer loan which will suit your needs.
Armed with your loan balance and current interest rate your broker will compare mortgage rates across their panel of lenders – including your current lender – and tell you what you could save.
My typical borrower refinancing in Penrith is saving upwards of $2,000 a year in interest, anything under this saving and I will advise them of other options we can do to save money. In fact the greatest saving I have achieved (a very proud moment I can tell you!) was $22,800 per annum saving and to get started all it took was a call from the borrower to compare mortgage rates. And that’s just one loan refinancing example, I have plenty more stories of saving.