to get a lower interest rate

to get a better product

to buy before selling

to increase their borrowing capacity

to buy investment property or shares

to consolidate debt

to obtain cash

to ease cash flow

to have tax effective borrowings

dissatisfaction with a current lender's service

trap

There are many costs associated with refinancing.  For example, your lender may charge an early repayment penalty in the first 1-5 years of your mortgage.  This is often referred to as a Deferred Establishment Fee and is in addition to a mortgage discharge fee.  Another fee that could be charged a second time is mortgage stamp duty however this varies from state to state. 

tip

Refinancing can potentially save you thousands of dollars in interest over the life of your mortgage particularly if your current mortgage doesn't allow extra repayments or lacks a 100% offset facility and you have a good monthly surplus that could work against your loan.

However it is important to check costs versus savings to determine when and if you should refinance.  For example, it is usually not worthwhile to refinance if you plan to sell in the near future, or you have a relative small amount owing, or you have less that 20% equity in your home.  Unique Home Loans can help you to know when you will break even and start to save money before going ahead.  If it is not in your interests to refinance, we'll tell you.