Why would you refinance?




Why would you refinance?

SHAKE Finance.

Be Confident.


Are you paying more than next door?

These days home loans are a bit like electricity and gas contracts; it pays to shop around and find the best deal, and it is usually not very difficult to swap to a more competitive and suitable offering. Refinancing your existing home loan is about ensuring you have the most appropriate loan package for your current circumstances – and it is good sense to give your home loan a bit of a “checkup” every 12 or 24 months just to make sure it is still the most suitable loan for you.

By refinancing, you might:

  • Take advantage of a lower interest rate and pay less each month for your home loan, or pay the same amount but pay your loan off faster. In the current market there are a number of loans under 4% interest – so if you are paying more than 4% interest you should be at least browsing for better deals. On a $200,000 loan, half a per cent reduction in interest rate can save $1000 a year on repayments – so it is worth finding a loan with a good rate.
  • Consolidate a number of debts into one loan with one monthly repayment. Consolidating a car or personal loan with a home loan can greatly reduce the overall interest and monthly repayment, and simplify your accounts – this may be beneficial to you.
  • Upgrade your home loan to a loan with better features. Perhaps your loan is inflexible and you can’t redraw or make extra payments. Many loans these days also have extra features such as offset accounts that can make a fair difference to the amount of interest you end up paying. Some loans have zero fees.
  • Borrow additional funds to renovate your home or make a new purchase such as a car, boat or holiday.

As commonplace as refinancing is these days, there are a number of considerations that make it worth having a guide to support you through the process (or to just take care of the process for you). For example, your current lender may charge a fee for releasing your existing loan – so you need to be sure that the benefits will outweigh the costs. There will likely be paperwork involved in proving your credentials to the new lender. In the end for a little effort you may be highly rewarded, and your SHAKE Finance Guide would love to help you with the process.


If your loan has an interest rate over 4.5%, or if you have not “checked up” on your loan for a number of years – then it might be a good idea to shop around a little.





Phone Krista on 0432 759 744

Email Krista at krista@shakefinance.com.au