Author: Tom Goodwin - Commercial Content Editor for Finder.

With interest rates at an all-time low, we take a look at some of the benefits refinancing can offer

If you’ve had your home loan for more than 5 years, it might be time to take a look around and see if there are better options available.

Getting in touch with a mortgage broker can help you with this process -here’s how!

1. You could score a cashback

Sometimes when you refinance, you can be eligible for extra perks – like cashbacks!

At the moment, if you refinance your home loan via Aussie Home Loans, you could be eligible for a cashback of up to $350.

This cashback can then be utilised for your mortgage, superannuation or savings account.

2. A broker can take the hard work out of the process

Now, you can refinance directly through a lender directly (and you can find out more about that at our sister site Finder.

But working with a broker can be a great way to streamline the process for you.

The mortgage market is constantly evolving. It can be intimidating for the layperson!

However, brokers are constantly immersed in the environment, so they’re able to provide you with the insights you need.

And perhaps most importantly, they can handle the vast majority of the paperwork for you.

3. You could reduce your repayments

One of the main reasons people refinance is to get a lower interest rate.

This is because your interest rate directly affects your loan repayments.

So typically, a lower interest rate = lower repayments.

There are a number of advantages to having lower repayments.

• It can make it easier to pay off the loan more rapidly
• Lower costs can make it easier to save
• More predictable repayments can make it easier to manage a budget

In most circumstances, a broker can work with you to find an interest rate that’s lower than your current one.

4. You can consolidate other debt

Depending on the lender, you may be able to consolidate other debt into your home loan.

This might include credit card debt, a car loan, student loans and more.

Having just one payment to make each month at a single interest rate can reduce your expenses quite a bit.

Just remember - refinancing your home loan is a significant financial decision.

Although it can be a positive long-term choice, it’s important to remember that it can affect your credit rating temporarily.

So if you’re planning to borrow again soon, there may be other solutions that are more appropriate.

It’s worth speaking to a professional, like a mortgage broker beforehand.

5. You can get better loan features

Not all home loans are created equal. So if you switch to a new one, you should also ask your mortgage broker about some of these loan features.

• Offset account

Offset accounts sit adjacent to your home loan, allowing you to “offset” the interest you need to pay. So the more cash you’ve got stored in there, the less interest you’ll need to pay. Over the lifespan of your loan, this can save you thousands of dollars.

• Extra/flexible repayments

Having extra or flexible repayments as part of your home loan can allow you to pay off your home loan faster, and in turn build up equity more rapidly.

• Redraw

Whether it’s an emergency or a great opportunity, sometimes you need to be able to access funds quickly. A redraw facility allows you to utilise the funds you’ve got stored in your home loan from extra repayments, without requiring a separate loan.

When used correctly, these features can be a great way to pay your home loan off more quickly, or access equity without requiring additional refinancing.