Refinance to better rates, terms or structure.
Without the complexity.
Refinancing isn't just about chasing a lower rate. It can also involve changing loan structure, accessing equity, comparing lender service, or preparing the debt position for a future move.
Common refinancing reasons.
Refinancing may be considered for several reasons. Bharat Finance helps clients compare the potential benefit with the costs and trade-offs.
Rate savings
A lower rate may reduce interest, but the benefit depends on the balance, remaining term, fees and how long the new loan is likely to be held. The estimated break-even period should be compared with switching costs.
Access equity
Increased property value may support an equity-release application, subject to valuation, lender policy and your ability to repay. This increases the debt secured against your home.
Loan restructure
Switch from interest-only to principal-and-interest, split loans differently, or move from fixed to variable (or vice versa).
Lender switch
Better service, flexibility, willingness to lend into investment scenarios, or lower fees.
Debt consolidation
Combining debts may simplify repayments, but a longer term can increase total interest and convert unsecured debt into debt secured against your home. Compare total costs and risks, not just the monthly payment.
Reduce loan term
A shorter term may increase repayments and reduce total interest. Extending the term may reduce repayments but increase total interest, even with a lower rate.
Is refinancing worth it?
Refinancing has costs. Bharat Finance compares them with the potential benefit so clients can understand the estimated break-even point and wider implications.
Costs to consider:
- Break costs on fixed loans (if applicable)
- Exit fees from current lender
- Valuation fees, where charged
- Legal and conveyancing costs
- Establishment and settlement fees at the new lender
Payback calculation:
Illustration only: $1,500 in switching costs divided by an estimated $100 monthly saving gives a simple 15-month break-even point. This assumes the saving stays constant and ignores other costs and changes. Compare loans over the same remaining term.
Review your loan and explore options.
Bharat Finance reviews the current loan and compares refinancing scenarios, including costs, structure and potential benefits.