Property owners looking to purchase an investment should consider refinancing, particularly if their initial loan wasn’t taken out with investing in mind, according to Mortgage Choice.
Financial decisions should match your lifestyle and situation, and should be altered depending on changing circumstances, Mortgage Choice spokesperson Belinda Williamson said.
The costs versus the benefits of refinancing must be added up, Ms Williamson explained.
"The benefits of switching to a home loan that is better suited to a borrower's current lifestyle and financial circumstances can be widespread, but careful consideration should be given to the decision,” she said.
Costs can include exit fees for exsting fees and potential application fees and lenders’ mortgage insurance.
Lower interest rates, fewer fees and better flexibility and features can be realised by switching loan products.
"An analysis of our recent loan data shows we have saved our refinancing customers on average $10,000 each over five years,” Ms Williamson said.
"When considering refinancing to a new lender and/or loan, be sure to reflect on your short and long-term financial and lifestyle needs, and weigh up the costs, risks and benefits involved."