Refinancing is the process of rearranging your loan and/or mortgage security documents. Whether you are looking at refinancing your home loan or looking to see how an investment property could work in your property portfolio, there are a number of things to consider. It is important to understand how refinancing works, and why you might undertake the process.
The reasons why you might undertake refinancing includes restructuring your loan facilities to better suit updated financial circumstances, taking advantage of better interest rates on offer with other lenders, or implementing a debt-consolidation exercise. You may have a credit card and consumer finance debt and a high-interest rate which could be consolidated into a loan at a much lower interest rate secured against your property.