A recent survey of Australian mortgage holders found 45% had never refinanced their home (source aussie.com.au/refinancing report Apr 16). The report also found customers who DID refinance saved an average of $240 per month ($2,880 pa) by refinancing a 30 year loan.
The cash rate set by the Reserve Bank of Australia (RBA) is at an all-time historical low, and most lenders are offering the lowest home loan rates ever seen. But a decision to refinance should not be based solely on a lower interest rate – times change, needs change, our income and expenses change. Loan features change!
There are many reasons to consider refinancing:
- Better interest rates
- Saving you money
- Better loan features
- Consolidating credit cards and other debt
- Finish off the uncompleted renovations
- Purchase the dream (boat; holiday etc)
So why doesn’t everyone refinance?
Stats show that people are concerned about the amount of paperwork that might be involved with refinancing, or that they think it’s too hard to compare loans and providers, or that they might be hit with exit fees.
These are all things a mortgage broker can help you with!
Benefits of using a mortgage broker
- we do the paperwork for you
- we deal with the lenders on your behalf
- we compare costs and features of all available options
- sometimes we can apply for a better deal with your existing lender, an offer they may not necessarily share with you. Our service motto is You’re Important – if it’s the best option to stay with your existing lender that’s what we will recommend
For more benefits of using a mortgage broker, read our blog post – 7 Reasons to Use a Mortgage Broker.
We will consider your individual circumstances to determine if refinancing is suitable for your situation. Gone are the days of making minimum repayments at a similar interest rate over 25-30 years. It is recommended you review your home loan every two years.
Read more information on Refinancing, or have a play with our Loan Comparison Calculator to look at alternative scenarios.
Contact Us today to discuss your current mortgage and the possibility of refinancing.