If your loan is more than 2 years old, it’s time to ask yourself…are you completely happy with your current loan?
Is it time to look for a better deal?
It is surprising how many people don’t know what rate they have on their home loan. We understand that once you successfully settle your loan that you’ve done the hard work, now is the well earned rest stage. 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 are 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.
Could your loan be due a restructure?
Restructuring your loan can lead to a lot of potential benefits. One of the main reasons you may want to restructure your home loan is to unlock equity (the difference between your home’s current value and what you owe) allowing you to release funds for exciting renovations or other projects. Additionally, restructuring to a lower interest rate could increase your savings each week. You can use the extra cash for any number of things that weren’t previously afforded to you under your original funding.
If you’d like to learn more, get in touch with us today.
Has your life changed?
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.
How good does paying your loan off sooner sound?
Its only natural that your financial situation will change over time, sometimes 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 find you are able to structure your loan and open up access to useful 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're just paying for features you don't need.
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!
Would you like to access your equity or make an investment?
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 and sitting there.
Equity is calculated by subtracting your mortgage balance from the market value of your home, usually done through a home evaluation. That difference in values is called Equity.
Having equity in your home is a great position to be in. You can leave it sitting there and work toward paying off your house sooner or you could even draw down on your equity to help fund a renovation or upgrade your home. Alternatively, you could use your equity to help purchase an investment property. The options are out there, contact us today to get the ball rolling.
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It pays to shop around. We have searched hundreds of different loan options to find you the top four results based on your choices.
* Products selected are indicative only based upon the general information you have provided and subject to meeting lender terms & conditions. There may be cases that we are be able to offer more competitive products based upon obtaining further information and meeting lender requirements.
