What is refinancing?
Refinancing your home loan is when you take a new loan to pay off your existing home loan, using your house as collateral. There are three main reasons why people refinance their home:
- To reduce their monthly repayments if you are able to get a new loan with lower interest rates.
- To pay less in monthly repayments by extending the duration of your loan.
- To get cash from the loan by refinancing their property.