Reviewing your home loan regularly is sensible, and never more so than now where things are changing so fast. We’ve recently seen the official cash rate slashed, and this has created a very competitive mortgage landscape. There is plenty to consider before taking the step, and you should make sure you understand all the pros and cons.
One of the main benefits to refinancing is to take advantage of lower rates at a competitor, or sometimes even with your own lender. Lenders will often put very competitive rates on the market to attract new customers, leaving existing customers paying more. And the difference between one lender and the next could be thousands of dollars a year.
It could also be that your circumstances have changed since you initially took out your loan. Perhaps you want to clear your credit cards and consolidate some debts, or want to access some equity to start that renovation you’ve been talking about.
To make sure everything is factored into your decision, you will need to understand your existing rate, repayments, and fee schedule. Will you have to pay LMI again? Is there a break cost such as with a fixed loan? There might also be other features such as offset accounts, or user-friendly internet banking for you to consider.
Your property value also comes into the equation, so we would look at some data to understand what the house or asset is worth.
If you find an alternate option to your current loan that meets your needs and is going to save you money then it’s usually a simple decision to make.
We can compare lots of different lenders and, if there is a better opportunity, we’re able to access it. We are always working to give you great advice that’s in your best interests.
Contact us today for a home loan health check. You could save yourself some serious money.