When you apply to refinance your house mortgage, the lender examines your financial condition in the same way that they did when you applied for the first loan. Although a lower property value is a huge consideration in refinancing, it will not fully eliminate your chances because price is only one factor to consider.

Let’s look at some refinancing ideas and how this can affect refinancing:

Know the worth of your home: Knowing the value of your home can help you determine what refinancing choices are available to you. You can set one up on your own or wait for one to be set up by the lender you’re talking to about refinancing.

Find our why you’d want to refinance: Your motivation for doing so will influence your capacity to do so. If your property’s value has declined, getting cash out may be challenging, but you might be able to refinance for other reasons (e.g. to consolidate debt consolidation, to switch rates from fixed to variable rates etc.).

Speak with a lender: Speak with the lender you want to refinance with to see if refinancing is even an option. If you are not in negative equity, you may still be able to refinance.

Speak with a mortgage broker: Speak with a Home Loan Specialist to obtain an experienced view on your refinancing alternatives. They’ll be able to inform you whether you can achieve your refinancing goals or if you should focus on boosting your home equity instead.