By Phil Ringuet
In times of uncertainty, home and investment lending is a quick way to save money and provide certainty around repayments and ongoing expenses.
With rates starting from 2.09%*, on average we are helping our clients save 1% on their current lending facilities and in many circumstances gaining access to cash payment of up to $4,000 for doing so.
Whilst everyone likes to get a good deal, research shows that Australians on average are paying 0.9% more than the best rate available to them.
For example, a client paying 4.9% on a $500,000 loan will be paying roughly $266 per month more than they should be. Over a 30-year loan term, they could be saving $95,760 by regularly reviewing their loan.
So why else do people consider refinancing?
- To benefit from special offers which can include cashback of up to $4,000.
- To obtain a better interest rate or different features and add-ons such as redraw facilities, offset accounts or flexible payments.
- To use the equity in the home to borrow money, renovate or improve lifestyle (e.g. new car or holiday).
- To consolidate debts such as a personal loan, car loan or credit card into the mortgage so it becomes easier to manage finances.
How do I know if refinancing is right for me?
- Do you have more than 20% equity in your home and is your income likely to stay the same or rise?
- Has your income maintained or improved since your last home loan application?
- Are you able to keep making your current monthly home loan repayment?
- Is your current rate at least 0.5% higher than the refinancing rate you’re being offered?
- Are you keen to achieve your savings goals?
If you have said yes to the questions above we are confident we can help you to secure a better deal and save money today.
*All rates are subject to change at any time as well as to meeting credit criteria from banks.
An Important Message
While every effort has been made to provide valuable, useful information in this publication, this firm and any related suppliers or associated companies accept no responsibility or any form of liability from reliance upon or use of its contents. Any suggestions should be considered carefully within your own particular circumstances, as they are intended as general information only.