Refinancing lets you change your home loan to suit your new circumstances. The new provider or the new loan will discharge the existing mortgage and generally apply any existing security to the new loan.

A new loan can be used to pay out your existing loan. The property is usually used by the new lender. Home loan refinancing may be used for different purposes, including raising funds for home improvements or consolidating or paying off other debts such as credit cards and personal loans.

When money is scarce, borrowers may benefit from turning conventional wisdom on its head and opting for a mortgage refinance over the longest possible period. This can help lower monthly payments and free up hundreds of dollars each month for other financial obligations.

A lot of home owners refinance their existing loans to benefit from the reduced rates which lower their repayments. Refinancing can also help them obtain a shorter-term loan. Others refinance to consolidate their debts or get out of a loan product that they no longer see fit for them.