Refinance Loan

Refinance Loan

When it comes to addressing a large budget gap, many of us consider a refinance loan as a last resort.

There’s a good reason for this thinking: loan refinancing or mortgage refinancing essentially extends your loan terms and obligations. While there are many good reasons to take on a loan refinancing, borrowers should consider the hefty responsibilities that come with this type of credit.

Here are some questions to keep in mind before signing off on a refinance loan.

Does refinancing a loan mean starting over?

Refinancing is a form of credit where an existing loan is paid by another loan, ostensibly extending the loan term and unpaid balance to match the newer loan’s terms. A second mortgage on one’s real estate property is a form of refinancing.

Many people use a second mortgage as a common means of financing investments, such as stocks, businesses, or personal loans for students. Others may want one for renovation purposes, such as major property repairs or to improve market value before selling a property. It’s also common to take a second mortgage because of medical emergencies or to address considerable financial trauma.

A refinance loan isn’t inherently bad. As mentioned earlier, there are valid reasons for borrowers to want or need such a loan, especially a fixed rate refinance. Instead of thinking about refinancing loans as starting over, it may be more prudent to think of them as extending the lifespan of your loan.

Always refinance responsibly

As with any credit product, it’s important to understand the responsibilities involved in your refinance loan before fully committing to one.

Because refinancing or re-mortgaging involves new loan terms or agreements with your credit provider, always ask or clarify points that differ from your earlier loan. This is especially important when it comes to repayment schedules or added charges; most refinance loans necessitate paying a new establishment fee, or include penalty fees for past missed payments.

Don’t be hesitant to check your credit score after initiating a refinance loan, as well. Understanding how it impacts your current rating will empower you when you negotiate for any refinance loans in the future.

Will I end up paying more if I refinance a loan?

A refinance loan doesn’t necessarily mean that you’ll be paying more.

Refinancing is a good decision if you’re coming into a big lifestyle change or upheaval, such as moving residences. A refinance loan is also a good call if you’ve experienced a sudden financial trauma that is greatly affecting your capacity to maintain the same level or frequency of repayments.

By restructuring ongoing loans with a refinance loan, you adjust your debt management in a manner that’s more reasonable and feasible for your present circumstances.

When you refinance with SocietyOne, what you see in your loan agreement is what you pay only – we don’t require any early repayment or monthly fees for both unsecured and secured loans, so you can plan any early repayments without hassle.

Likewise, if you require temporary relief for an upcoming repayment, contact us immediately through our SocietyOne Hardship Support portal (found on the Contact page).

Getting your credit score back on track

Financial literacy is a great way to beat back a poor credit score, which is why SocietyOne offers invaluable resources completely free to new and existing borrowers, such as the Credit Score tool.

The Credit Score tool aims to help our borrowers take back control of their credit score by allowing them to check their credit score for free. This tool is available on both our website and our mobile app, so you can track your progress whenever you need to, wherever you are.

Your credit score is one of the many eligibility criteria that many credit providers look up when you apply for a refinance loan. Many borrowers have experienced being rejected for loans despite having no outstanding debts or loans or maintaining good personal finances. Contrary to popular belief, credit scores don’t just rate you for having loans or not – they also rate your credit habits, especially your repayment history.

We also have a club that gives members unlimited access to credit resources and insights into handling credit dues. This service is obligation-free – you don’t need to have an existing refinance loan with SocietyOne to sign up and join.

When is it necessary to refinance a home?

Refinancing is a choice that doesn’t follow any set metrics – whether or not you need to refinance is up to you and your unique circumstances.

If you feel that you’re not yet ready for a refinance loan, SocietyOne has secured and unsecured personal loan options available. These options afford more flexibility for loan terms, as well as comparatively lower rates than traditional bank loans. The stronger your credit profile, the more attractive the loan terms we can offer.

SocietyOne’s unsecured loans have a loan minimum of $5,000 and a maximum of $50,000. Some examples of unsecured personal loans are an unsecured car loan or a holiday loan. These loans come in two-, three-, and five-year terms, so you can choose which option is better suited for your needs.

Meanwhile, our secured loans have the same minimum loanable amount but a maximum of $70,000. In addition to the same terms available for unsecured loans, secured loans also have a seven-year term option for a more competitive loan offering. When applying for a secured refinance loan, our team may request documentary proof of your citizenship or residence or existing assets for collateral.

Our team will never solicit sensitive personal information like bank log-ins or email credentials, whether by phone, email, or text message. Please contact us immediately if you’ve received any such messages.

We can be reached at customer.service@societyone.com.au and either 1300 144 221 or 02 8397 9700. Our phone support is active from Mondays to Fridays, 9.00 a.m. to 5.00 p.m. AEDT.

Find your credit partner in SocietyOne

From debt consolidation to home renovations, SocietyOne has helped thousands of families and professionals bridge budget gaps and seize hard-earned opportunities. Through our many credit products, we’ve also been able to offer our borrowers the option to earn through consumer lending and invest in loans. We’ve been delivering effective credit since 2012 and fully intend to continue doing so in the coming years.

SocietyOne is an award-winning credit provider that is licenced and regulated to operate online loaning in Australia. Let us offer you alternatives to a refinance loan – check your rate and apply for your first personal loan with us today!