Should You Refinance Home Loan Contracts?


As all Australians – at least those that haven’t been living under a rock since they were born – already know, homes are expensive in the Land Down Under. Typically, people would determine their repayments through Home Loan Calculator before taking out a loan. Making things worse for people seeking out new homes or lightly used residences is that, because debt is at an all-time high among Australian consumers, most consumers don’t mind taking on even more debt in the name of a mortgage.

Chances are, most people that seek out home loans in Australia find positives to refinance home loans. Let’s go over the most basic ways to refinance home loans, why Aussie consumers tend to refinance home loans more often than not, and other tidbits related to the need to refinance home loans.

There Are Two Major Ways To Refinance Home Loans

First and foremost, defining what refinancing means is important for consumers to understand. The words refinance and re-fi are mentioned far too often in financial services. Even though they’re so popular, far too many Aussies – not just Aussies, but everyone around the world – don’t understand them.

Re-fi is simply short for refinance. When people sign an agreement to pay installments towards the ownership of something over time, that’s a financing agreement.

To refinance home loans is to structure debt, equity, payments, disbursements, and royalties in a way that’s beneficial for lessees. Typically, everyone involved benefits in one way, or another.

Without further ado…

  • In-house refinancing keeps Refinance Home Loans contacts within the same organization that originally created, sponsored, and signed them. This typically involves more structure c
  • External refinancing involves taking the mortgage agreement away from the financial institution that originally sponsored it. This method is typically used to find lower interest rates, sweeter packages, and better business partners to work alongside.

Why Exactly Do So Many Aussies Refinance Home Loans?

There’s no hiding the average consumer’s worries of rising consumer debt. Because debt has become so “normal” in today’s Australian landscape, the average dollar value of mortgages has consistently increased over the years because home loans are somewhat like “free money,” in the vein consumers get to use them now, but don’t register the reality of them until later.

As such, many Aussies start off their mortgages with poor terms. Over the following few years, these once-struggling consumers find it possible to save money, potentially shorten mortgage terms, and otherwise prosper from restructured home loans, all thanks to those who refinance home loan contracts.