The Modern Home Loan – Full of Potential or a Complete Burden?

The popular impression of a mortgage or other kind of substantial loan is that of huge interest resulting in monthly amounts that can barely be paid and greedy, moustache twirling bankers counting their gold behind the scenes.  Obviously, we do not live in a world governed by cartoon logic, otherwise, the Acme Corporation would have filed for liquidation a long time ago.  The modern home loan is no longer a life long burden of crippling repayments, but rather a flexible tool that can be adjusted to fit your changing circumstances in most situations. 

Changing times 

There are many things that can cause a seismic shift in our life circumstances, and when these events do occur we need to adapt and make changes to retain our normality.  Expanding your family is a very common reason that people have a permanent change in their circumstances.  However, there are plenty of reasons, some, unfortunately, aren’t so happy such as divorce, sickness or loss, which are common reasons people seek to downsize or relocate to more suitable properties.  Thanks to the more flexible nature of the modern home loan, such needs and desires are not out of reach as it is usually very possible to refinance your home loan to reflect your new circumstances. 

Adapt to survive 

The need to have a greater or lesser loan amount available to you will mean that your lender will need to reassess your situation and determine if they are happy to accommodate you.  Depending on the scale of the changes you are seeking, the likelihood of their agreeance can vary dramatically.  So before you decide to simply reach out to your current provider, the need to refinance provides a perfect opportunity to see if you are getting the best deal you can.  Seeking out a reputable broker will help ensure that you receive the best loan advice possible as they can examine your options from a cross-market position.  Should you have the same conversation with your existing lender, they will only be able to advise you about their products and make a recommendation accordingly. 

Don’t limit your options 

There are definitely going to be people out there for whom refinancing is a very limited option.  This will most likely be due to the very circumstances they are needing to adapt for, but for everyone else, the best option you have is to cast your net as wide as you can before making a decision.  If you are finding the market very limited due to your less than desirable circumstances, then it is definitely worth speaking to your existing lender as they will more often than not be able to help you in some form.  Just do not expect a deal as good as the one you could find on the open market; but if you are restricted by circumstance, it’s a conversation you need to have if refinancing is something you need. 

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