When you take on a mortgage, you generally have a good idea of your financial plans and where you are going to be over the next five to 10 years, perhaps even further. However, we can’t predict the future and circumstances change, so there may come a time when you need to do some home loan refinancing. Here are three times when you might need to look at doing this.

When you’re moving into investment property

Every now and then a property you had bought for investment become your best option for living permanently. Becoming an owner-occupier is a move that many people have made, but it may require you changing your investment home loan. Oftentimes people will set up an interest-only loan for their investment property, as it is something they plan to sell. However, if you move to an owner-occupier role for the long term you may want to refinance so you can pay off the loan in full.

When you’re paying off debt 

Sometimes, other debts can creep up on you and cause problems – refinancing your loan can be handy in these situations. Refinancing can give you the opportunity to incorporate your other debts such as student loans, hire purchases or credit cards, giving you more breathing room to consolidate them. While the potentially higher interest rates aren’t ideal, this is a time when refinancing can be very handy.

When you’re switching interest rates

Another malleable element of a mortgage is the interest rate. Perhaps you see higher rates on the horizon, and want to switch from a variable rate to a fixed rate. Or alternatively, you want to get off your fixed rate to try and ride along with lower variable rates? Either way, capitalising on interest rates is another reason people often refinance.

Of course, refinancing is a big decision – speaking to a mortgage broker can help you decide when is the best time to change your home loan.

You can contact a Smartline Mortgage Adviser on 13 14 97 for home loan advice. Or complete our call request form and we’ll call you!

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DISCLAIMER: The information contained in this article is correct at the time of publishing and is subject to change. It is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, Smartline recommends that you consider whether it is appropriate for your circumstances. Smartline recommends that you seek independent legal, financial, and taxation advice before acting on any information in this article.