Refinancing Alternatives and Options

If you have determined that refinancing will not save you money in the long run, there are other alternatives to consider that can help you achieve your property goals sooner.

Request a lower interest rate from your lender

Many lenders offer lower interest rates for new customers, which can be frustrating if you see your bank or lender offering a lower rate than the one you have.

Asking for a lower rate can be effective, but you should also know how to negotiate.

If you want to ask for a lower interest rate on your mortgage, it is best to get your My LMI Group broker to do it for you. Your broker knows what rates the banks are currently offering and can use this knowledge to negotiate on your behalf.

Mortgage Top-up Options

When you want to fund a home improvement project or purchase a car, but don’t want to take out another loan, you might consider a mortgage top-up.

A mortgage top-up is when you access the equity in your home to increase your home loan.

A mortgage top-up can be cheaper than taking out a personal loan or accessing a credit card. This is because home loans generally have lower interest rates than credit cards or personal loans. However, you need to be aware of the impact a top-up may have on your lifestyle, as your repayments might increase and it could take you longer to pay off your loan.

Changing Your Home Loan & Mortgage Type

If you are happy with your home loan, but would like to alter its terms, such as the repayment type or amount and frequency of repayments, you do not necessarily have to refinance.

You may be able to switch from principal and interest repayments to interest only, move from a variable rate to a fixed interest rate, or change your repayments from monthly to fortnightly by speaking with a My LMI Group broker.

Ask your broker about other mortgage refinancing options.

Your LMI Group mortgage broker can help you find the right home loan for your needs. They’ll take the time to understand your goals and present you with options that are right for your situation.