{"id":5335,"date":"2023-10-19T09:30:37","date_gmt":"2023-10-18T23:30:37","guid":{"rendered":"https:\/\/financialplus.com.au\/?p=5335"},"modified":"2023-10-19T09:30:37","modified_gmt":"2023-10-18T23:30:37","slug":"how-much-can-you-really-save-by-refinancing","status":"publish","type":"post","link":"https:\/\/financialplus.com.au\/how-much-can-you-really-save-by-refinancing\/","title":{"rendered":"How much can you really save by refinancing?"},"content":{"rendered":"
Home loan refinancing is a hot topic right now.<\/p>\n Ever since interest rates hit an upward trajectory in May 2022, skyrocketing numbers of homeowners \u2013\u00a0as many as 28,000 each month<\/a>\u00a0\u2013 have turned their attention to refinancing.<\/p>\n However, plenty of Australians could be missing out on the savings of refinancing simply because they\u2019re unsure of what\u2019s involved.<\/p>\n Research by\u00a0Finder<\/a>\u00a0shows one-in-five people are in the dark about refinancing, while 63% admit to being only \u201cslightly confident\u201d in their knowledge of refinancing.<\/p>\n So, let\u2019s take a quick look at what refinancing is, and how it can reduce stress by potentially putting cash back in your pocket.<\/p>\n Refinancing simply means replacing your old mortgage with a new loan and lender.<\/p>\n The process is similar to the one you followed to apply for your current loan.<\/p>\n You decide the loan you\u2019d like to switch to, make a formal application, and provide evidence of income, expenses, and your personal ID.<\/p>\n If the loan is approved, you can sit back and relax as the new lender arranges to pay out your old loan. When that\u2019s taken care of, you just start making repayments to the new bank.<\/p>\n Refinancing can be a surprisingly simple process. Better still, it can all happen very quickly,\u00a0usually taking about four weeks<\/a>\u00a0from start to finish.<\/p>\n Refinancing can be an opportunity to access home equity, enjoy better loan features, or consolidate several personal debts.<\/p>\n But the number one reason for refinancing is to save money by paying a lower loan interest rate. Those savings can help take the financial pressure off homeowners.<\/p>\n According to Finder, 60% of refinancers admitted to being stressed about their home loan before deciding to switch.<\/p>\n If that sounds like you, making the move to a new loan could be a valuable stress buster.<\/p>\n Potentially, a lot!<\/p>\nNot sure what refinancing is all about? You\u2019re not alone. Our quick explainer lets you master the basics and helps you work out how much you could save.<\/strong><\/p>\n
What does refinancing mean?<\/h3>\n
Refinancing can be a stress buster<\/h3>\n
How much could you save by refinancing?<\/h3>\n