FAQ – Refinancing

Common questions about Refinancing

What is refinancing?

Refinancing lets you change your home loan to suit your new circumstances.

How does refinancing work?

When you take out a new loan, you use some or all of the funds to pay out your existing loan. The new loan often comes from a different lender, but many people refinance with the lender they’ve been using for years. If you move to a new lender, that lender will take care of paying out your existing loan.

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What type of things do people refinance for?

By refinancing, you can use your mortgage for home improvements, buying a new car or paying off larger credit card balances. Home loan refinancing may be used for different reasons including:

  • Renovating your home.
  • Paying off your debts quicker and cheaper by rolling them into your home loan.
  • Obtaining a cheaper rate, even if it means giving up a few loan features.
  • To raise cash for a purchase.
  • To get a home loan that will apply to money you have earning interest – an ‘all-in-one’ account.
  • You are paying a high interest rate – for example, if you arranged a low-start, rising-rate loan from your homebuilder.
  • You want to switch from a fixed rate to a variable rate, perhaps because you can accept the risk of higher repayments.

How will refinancing benefit me?

Refinancing is a smart way to manage your money. When you refinance to lower the interest rate you have to pay, you can significantly reduce your monthly mortgage payment as long as you don’t increase your mortgage principal amount (as would occur with a line of credit). Refinancing can save you money and help increase the value of your assets.

Need Help?

We know that choosing a new loan can be difficult. At imfs we’re here to help you. If you have any questions at all just give us a call or send us an email.

In view of the increasing restrictions on some businesses and further social distancing measures being enforced, we will be making some changes to our business operations. Most importantly, we want to let our clients know that we are here to assist with any queries or concerns they have regarding their loans and potential financial difficulties. Going forward, all of our client appointments will be non-face to face – ie via skype, facetime or by phone; Additionally, all of our document sign-ups will take place via phone/skype or facetime, and clients will need an unrelated party ( ie unrelated to the transaction) to be available to witness signatures for their mortgage or other security documents.
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