Increasing the loan can be opted when you want to consolidate debts or free up some money for other expenditures like home renovations. This also suits well you have lots of different credit cards and are paying very high-interest rates. Consolidating your debts in one personal loan will make reduced interest rates and repayments much simpler.

Loan amount may be decreased in order to reduce the loan term, your monthly repayments as well as securing a lower interest rate. It might not be necessary to refinance if you are decreasing the loan by injecting a lump sum amount. However, it is always recommended to assess the latest interest rates and terms banks or other lending institutions are offering so as to find a suitable product or deal according to your needs and circumstances.

Lastly, keeping the loan amount the same is most likely when you are looking for a better deal. What really constitutes such a deal is when you are taking care of a certain set of circumstances. For example, your credit card score has improved and now you can secure a better interest rate depending on the market conditions.

Whatsoever is the case, comparing deals online and taking advantage of market conditions and checking your suitability is a great way to start so as to assess what deals appeal to you.

The Process of refinancing a loan is very similar to the process of getting a new loan. You typically start with exploring and comparing interest rates of different lenders and see which has the best offer. After that you compare the costs of your current mortgage with your existing lender and its terms and conditions.

Since the time of your first approved loan, if there has been an improved credit score then you may have a good chance of qualifying for more favourable terms.

In the process, take expert advice from our brokers on what options are available to you. A broker will also be able to step you through the process of applying to refinance, along with any documentation you’ll require. Once approved, your new lender will send a Letter of Offer and arrange settlement with your current mortgage provider. On settlement day you cease paying your mortgage with your old provider and start repayments with your new lender.