Refinancing your home loan is the process of getting a new loan to replace an existing mortgage. It might be with the same lender or a different one, but it’s secured by the same property – so it doesn’t involve moving or selling.
Refinancing might be a good strategy for people who:
- Want to get smaller debts under control by consolidating them into their home loan
- Have found a lower interest rate and have reviewed the comparison rate against their existing rate, as well as considering any break fees or other costs associated with switching loans. Even a 0.5% reduction could save a significant impact over the life of the loan – but make sure you’re looking at all the information so you can make an informed decision that will meet your needs
- Want to use their equity to finance an investment property or renovations.
Can I refinance if my repayments are in arrears?
This is a conversation best had with a lender, or potentially a licensed financial or tax advisor depending on your circumstances. Not all lenders will consider applications if an applicant has fallen behind on mortgage repayments, has a poor credit score or previous bankruptcy, or defaulted on a debt.
The good news? Pepper may be able to help with refinancing even if you’re in arrears.
Keen to know more? Your home loan is likely to be one of the biggest financial commitments you’ll make. Read our Ultimate Guide to Refinancing and decide if your home loan still works for you.
This article provides you with factual information only and is not intended to imply any recommendation about any financial product(s) or constitute tax advice. If you require financial or tax advice you should consult a licensed financial or tax adviser. Neither Pepper nor its related bodies, nor their directors, employees or agents accept any responsibility for loss or liability which may arise from accessing or reliance on any of the information contained in this article. For information about whether a Pepper loan may be suitable for you, call Pepper on 13 73 77 or speak to an accredited Pepper Money broker.
All applications are subject to the credit provider’s credit assessment and loan eligibility criteria. Terms, conditions, fees and charges apply. Information provided is factual information only and is not intended to imply any recommendation about any financial product(s) or constitute tax advice. If you require financial or tax advice you should consult a licensed financial or tax adviser.
©Pepper Money Limited ABN 55 094 317 665; AFSL 286655; Australian Credit Licence 286655 (“Pepper”). All rights reserved. Pepper is the servicer of home loans provided by Pepper Finance Corporation Limited ABN 51 094 317 647. Pepper Asset Finance Pty Limited ACN 165 183 317 Australian Credit Licence 458899 is the credit provider for asset finance loans.