With interest rates currently sitting at historic lows, if your loan is a little older, you could be paying far too much!
It never ceases to amaze us how many people don’t know what rate they have on their home loan. We understand that once you successfully settle your loan that the hard work is over. The repayments become a ‘set-and-forget’ process, as you are generally able to afford them.
However, many borrowers are potentially costing themselves thousands of dollars a year by not refinancing their loan. Why? Because every borrowers situation changes over time, just like the lender products. Thanks to industry competition, new products and rates are released all the time.
With interest rates currently sitting at historic lows, if you haven’t had a home loan check up within the last 6 months, there is a very strong chance that you could be paying too much for your loan.
If you are unsure if you should refinance, keep reading or get in touch with us to set up an appointment.
If you have had a home loan for a few years now, it’s safe to assume your life has changed in that time. You may have started a new job, received a promotion, or gone through significant life changes such as getting married or had your first child.
You might even be near the end of a fixed rate term or interest only period so now is a great time to find out what your options are.
Refinancing will allow you to ensure your home loan is still in line with your needs and goals.
Your financial situations tend to change over time, some positively including career progression and the associated pay rises. If you find you may be able to pay more towards your loan and see it gone sooner, then it may be worth looking at refinancing your current loan.
By refinancing, you may be able to structure your loan and get more out of it by accessing features such as a redraw facility or an offset account. By paying your salary into an offset account, you reduce the interest you pay on your mortgage each month. A redraw facility allows you to access any additional repayments you’ve made on your loan.
Alternatively, you could also switch to a simpler home loan with less features if you no longer require your current features.
Every little bit extra towards your loan cuts down the interest paid and the loan term. If you can, you'd be mad not to!
If you purchased in an area that has experienced home value growth while you’ve been paying down your mortgage, or if you have made improvements to your home, you may have a substantial amount of equity built up.
Equity is calculated by subtracting the remainder of your mortgage from the market value of your home, usually done through a home evaluation.
You could also draw down on your equity to help fund a renovation or upgrade your home. And, if you want to, you could use your equity to help purchase an investment property. The options are out there, contact us today to get the ball rolling.
Our team will help you search, choose and settle your loan. Chat to one of our loan specialists at a time that suits you.
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