Refinancing your home loan means paying off your existing one, and replacing it with another - often with a different home loan provider.

There are several reasons why people choose to do this:

• Switching from a higher interest rate to a lower rate
• To shorten the term of the loan
• Change the structure of the loan - from fixed to floating, vice versa, or to a combination of the two.

Before you refinance, it's a good idea to make sure you're aware of the in's and out's:

• Be aware of the dangers - There may be some dishonest mortgage borkers other there, who put their interests before your wellbeing. So do the maths, seek a second opinion to make sure you're not being ripped off.
• Understand the different mortgage types - Home loans come in may shapes and sizes and each type serves a different purpose. The home loan that is best for you will depend on your situation. Flexibility and having the option to repay your mortgage faster might be more important than having stability of your repayments.

The information in this section is of a general nature and is not intended to be taken as advice. First Credit Union recommends obtaining independent advice regarding your individual circumstances. Links to non-First Credit Union websites and material are done so for your convenience and First Credit Union accepts no responsibility for their content.