Refinancing is when an existing loan is paid off with the proceeds from a new loan. The same property is usually used as security or collateral. Refinancing usually occurs when a fixed term loan is due to expire. There may also be other reasons for refinancing which include reducing the term of a mortgage, changing from a fixed interest rate to a variable interest rate and changing lenders. A refinance may also be required due to financial distress. This is typically called debt restructuring.

Various decisions will need to be made on the type of loan required, the interest rate, the term of the loan and the fees associated with completing a refinance (including break fees). In order to decide whether a refinance is required, the savings in interest must be weighed against the costs and fees associated with refinancing.

Each refinancing situation is different and you should contact us to discuss the best option for you.