Should you refinance your home loan?

‘Should I refinance?’ The answer is different depending on your needs and current situation.

To put it simply, you wouldn’t keep a pair of shoes that no longer fit you, so why should you keep a home loan, personal loan, car loan or credit card that doesn’t fit you anymore either?

Circumstances change, finances change, your goals change, and sometimes refinancing is a necessary step to keep you on track financially.

The process of refinancing can seem daunting — really, who enjoys the extra research and paperwork! — but it is a move that can pay off. Before refinancing your loan you should be comfortable that this is the best decision for your circumstances. Also, make sure to check the costs involved, including any fees and charges which may apply.

What is refinancing?

Refinancing is the process of taking out a new loan to pay out your existing loan.

What are the reasons to refinance?

  1.   You want to reduce your costs or save money.
  2.   You want to access a better interest rate.
  3.   You want to access equity in your property.
  4.   You want to consolidate your debts.
  5.   You want to move your banking to the one institution.
  6.   Your financial goals or personal circumstances have changed.
  7.   You are no longer happy with your current financial institution.

For Queensland Country Credit Union Members Angela and Tony, refinancing was a key step in transitioning from a Big Four bank to Queensland Country to access lower rates, better customer service and higher customer satisfaction.

“We had a lot of accounts to move over — mortgage, credit cards, vehicle insurance, house and contents insurance,” says Angela, who worked with Queensland Country Credit Union’s Deeragun branch manager Mario Romeo to achieve a seamless transition for her personal and business finances.

“We chose a loan with a lower interest rate, that was tailored to suit us,” Angela explains of refinancing her home loan. “There was a lot of information that Mario needed, but he clearly outlined everything so there was a never problem to get it.

“I was actually amazed at how well it went.”

How to refinance

Refinancing doesn’t need to be a difficult process, and it isn’t if you have a supportive financial institution assisting you along the way.

“The whole process is about gathering information first up,” explains Mario.

“When Angela first came in to the branch, she was interested in investigating options for her finances,” recalls Mario. “We had a sit down, chatted about her situation, and Queensland Country, and we discussed options for Angela to compare us against her current loans.

“We had originally drawn up the business account documentation for a sole trader [in line with the existing business structure],” says Mario, “but the structure changed to a company during this time, and it was no hassle at all to change over.

“There’s a lot of job satisfaction when you can help members.”

 To find out more about the refinancing process and benefits, or whether refinancing could help you achieve your specific goals, contact the Queensland Country Credit Union team by phoning 1800 075 078 or visiting your local branch.

If you're looking to refinance your home loan, normal lending criteria apply. Fees and charges may apply. Download our Fees and Charges brochure for full details. Before acquiring this product you should read the Home Loans and Line of Credit brochure to view the terms and conditions of this loan and to determine if this product is right for you.