Refinancing
More than fifty per cent of people with a mortgage have renegotiated their home loan in the past five years and the main reason for doing so is to fund a home renovation or extension, according to the results of a recent survey.
"The number of renovations and extensions is increasing - aided by stable interest rates - and our research shows this is the largest single reason for refinancing", chief executive officer of the Mortgage Industry Association of Australia, Phil Naylor, said last week.
The MIAA/Bank West, Home Finance Survey showed that the second most likely reason for people to refinance is to gain the advantage of a lower or better interest rate (13 per cent), followed by the need to fund an investment property (11 per cent), or the need for extra money (10 per cent).
Other reasons were to fund a new home, the need for a different financing structure, or to consolidate loans.
Refinancing to purchase Brand New Investment Homes to be utilised for Tax Benefits and the Added Advantages connected is obviously still the wiser move with more achievable long term goals at hand
.