Page 120 - Smart Money

Common questions

Can I consolidate credit card or other debts into a home loan?
This is one of the reasons many people refinance. The advantage is that
you pay a much lower interest rate on a mortgage than for most other
forms of debt – e.g. credit cards, overdraft facilities, personal loans.
Providing you have sufficient equity in your property, you may be able to
consolidate all your debt in a home loan. If you take this option though, it
is important to make sure you maintain your repayments at their current
level or you could end up paying more over a longer period. Speak with
us today to discuss your personal needs.

How does refinancing work?
Your mortgage broker will work through the refinancing process in much
the same way as they did when you originally took out your home loan.
The refinancing process will consider a variety of home loans that best
suit your current or changing needs. You will be given a few options with
your new home loan and your broker will work closely with you to help
you determine which one is right for you.

Why refinance?

The reasons that people refinance are as personal and unique as their
situation, but there are some general reasons that people choose to
refinance. These may be one or more than one of the following:

$ Pay off debts: many people have accumulated additional debt
outside of their home loan, including personal loans, car loans
and credit card debt. The repayments on these can become
quite a burden, and typically the interest being paid is very high.
Refinancing can allow you to eliminate other debt and create only
one repayment instead of juggling multiple payments
$ Renovations or home improvements: you need additional
funds to renovate, extend or make improvements to your home.
Typically, any improvements you make to your home will add
value. By using the equity in your home, you can tap in to this
rather than funding it yourself

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