REFINANCING A HOME LOAN
Successful people adapt to the changes and find new opportunities. Let us help you identify those opportunities to make your life easier.
There are now more alternatives to mainstream bank products than at any time before, and more lenders available.
Whether you want to refinance your investment property or your home loan, we can find the best option for your needs.
Are you looking for a better deal?
Your life never stops and your circumstances change with life.
It wasn't long ago that even the thought of switching your mortgage
between banks was painful. Not only was it difficult, but often too expensive to make it worthwhile due to charges and fees. The last ten to fifteen years of change in Australian lending and banking has meant that switching home loans has never been easier.
HOW REVIEWING YOUR CURRENT LOAN
CAN MAKE A BIG DIFFERENCE
Pay off your mortgage earlier
If your goal is to be financially free, there are many ways to achieve this. New mortgage products are continually being invented. Some of these are specifically designed to help borrowers pay off their mortgage as quickly as possible. The cumulative effect of any one of these strategies can be substantial. For example, an additional $50 per week repayment would knock 5 years off a 30 year loan of $400,000.
Talk to us to see if we can help you pay off your home loan faster.
Consolidate all your
Wrapping credit cards debts or personal loans into a mortgage rate can save you thousands. A suitable repayment term should also be selected. It is rarely advisable to put short term debt over long periods; for example, paying a 1 year credit card bill over a 30 year mortgage term.
Consolidating your debt into one payment can also help you get control over all your outgoings and limit them to a single monthly or fortnightly repayment.
Take advantage of hidden equity in your home
As your mortgage decreases and the value of your home increases, you build up value. This value is called equity. Banks will allow you borrow against this at a very low rate. This is the most common way to begin purchasing an investment property.
Ensuring there is no legal mortgage over your own home
As soon as your investment property portfolio increase to such a level that there is as much equity as your home loan balance, you can simply switch the mortgage away from your own home and spread it across your investment properties. This way you are ensuring that your main home cannot be touched by a bank under any circumstance.
Better interest rates & lower repayments
Rates consistently change across lenders, products and fundamentally according to RBA decisions. Nevertheless you ought to have your own strategy as to how you will pay off your home loan and how to identify the margins of interest rate changes that you are comfortable with. It is possible for example to limit your exposure to rising rates as well as take advantage of decreasing rates at the same time. Split loans are now available with many lenders that allow you to have both fixed and variables rates. Some lenders even offer offset accounts for fixed rate loans.
REFINANCE TO GET AN OPTIMAL STRUCTURE
Dr. Frank and Prof. Emma are two medical professionals in QLD. While they were both on good salaries, as medical professionals the pressures on their time was ever-increasing, and neither seemed to be able to stop and seek out professional advice.
They had a home loan of $1.25m. They had two investment loans of $200,000 and $40,000. They also had car loans of $120,000 and $40,000, which had both balloon payments of 30% of the car value due to fall in 2 years.
They knew that they couldn’t afford to sustain the debts and found they were falling further and further behind each month.
By refinancing the home loan for a better rate over the same remaining term of 22 years, as well as refinancing the car debt, over 5 years, which was the useful life remaining of both vehicles, we managed to save them $1,600 per month in outgoings.
In addition, the new lender gave them $1,800 simply for bringing their loan to them!
A better rate is very easy for any broker. However, what separates good brokers from bad brokers is the recommendation of an optimal structure.