Depending on the reason’s why you would like to refinance your loan, the benefits can be significant. Some people can save literally thousands of dollars per year in interest repayments by making the switch.
Some people want to increase their cashflow by resetting their repayment timeframe. This can give them money to invest, or create a better standard of living for themselves.
Others want greater flexibility by adding features like an Offset Facility. An offset facility (or account) can give people the ability to reduce the amount of interest paid to their lender over the life of the loan. It does this by allowing them to sit their savings alongside their loan, offsetting the amount of outstanding debt they have, while still giving them access to their funds.
As mentioned previously, people also tend to refinance their mortgages so they can releasing equity in order to purchase an investment property. This can give them an easy way of growing their property portfolio and potentially their long term wealth, without the need to have cash savings in the bank.