We’ve gathered the top asked questions from our customers about refinancing and compiled a quick guide on refinancing, to keep you guys in the loop about it.

Table of contents

1. What is refinancing?

2. How to calculate how much you save by refinancing

3. How do you refinance your loan?

4. Reasons to refinance?

5. Are there any restrictions when I refinance my loan?

1. What is refinancing?

The process of refinancing is taking out a new loan to help pay off the existing loan typically at a lower rate or has better benefits compared with the existing loan. Most people change their home loan because their financial goals or situations have changed.

2. How to calculate how much you save by refinancing

Refinancing your home loan can help you save money when you secure a lower interest rate however this amount will vary from lender to lender. To get a basic overview of the potential amount you could save, a refinancing calculator can help you calculate this amount.

3. How do you refinance your loan?

To refinance your loan, it’s very similar to the initial process of getting one in the first place. Typically, you will shop around and compare interest rates and other terms with various lenders to see which is the best offer for your financial circumstances. If you want to save time on comparing the hundreds of loan products on offer.

Our team of lending specialists at Abacus Finance will assist you with the whole refinancing process from start to finish. Finding you a loan product that is best suited for you and the potential to help you save thousands.

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4. Reasons to refinance?

• Reduce interest costs is the most common reason for most people to refinance their loan to take advantage of lower interest rate costs.
• Since not all home loans offer the same features or flexibility. You might want to think about refinancing your current loan to a different type. For example, you might want to take advantage of a redraw facility.
• Over a period of time, most homeowners would have reduced the amount they owe on their mortgage, also the value of their home might have increased. This difference can be calculated as the equity you’ve built in your home. A cash-out refinance allows you to use the equity to borrow money at a lower cost.
• If your current fixed-rate period is expiring now would be a good time to refinance to a better interest rate.

5. Are there any restrictions when I refinance my loan?

It’s important to keep in mind when hunting for a new loan, that you should read the fine print before committing to anything. 

With low-interest products, lenders might impose certain limitations in exchange for those rates. That’s why it’s best to keep in mind if there are any restrictions in place for certain lenders.

Thinking of refinancing your mortgage?

At Abacus Finance, we understand there is a lot to think about when comparing the hundreds of loan products on offer in the lending market. We want to make the process simpler for you, by providing an obligation-free chat about whether refinancing is the right move for you.

The information in this post is general in nature and should not be considered personal or financial advice. You should always seek professional advice or assistance before making any financial decisions.