What should you do before deciding to refinance?
- Look at your loan agreement to see if you are within the lock in period. If you are, check how much the penalty fee will be if you decide to settle your loan earlier.
- Compare a few loan options to see if you can get a loan with a lower interest rate.
- Calculate the interest savings you can get by paying off your existing loan and compare it to the fees you will have to pay for the new loan. Click here to use our Home Upfront Cost Calculator.
- Make sure you can afford the new monthly repayments.
- In the event that you are refinancing your home to get the extra cash, check if the value of your property has gone up. You can get an estimate by checking property websites for the price of similar properties in your neighbourhood. But remember, if you decide to refinance, you’ll have to pay to get an official property valuation.