Refinancing

You are pretty much guaranteed to refinance your home loan at some stage throughout

your loan term.

Why Should I Refinance?

There are a few reasons for refinancing your home loan:

* To lower your monthly payments
* To shorten the length of your mortgage term
* To take advantage of lower interest rates
* To finance a home renovation
* To consolidate bills/rates
* Reduce interest rate risk

Refinancing your mortgage can give you a lot of options as far as the freedom of a

little bit of extra cash. There are a few different ways that you can go about

refinancing and the best way for you depends on what you are hoping to accomplish and

what your own personal situation is.

When should I Refinance ?

The best time to refinance your mortgage is when you have outstanding personal debts

on higher interest rates, such as credit cards and car loans. This way you are able

to get your personal debt off these high interest rates of 16% and down onto rates of

around 7%. This results in a massive saving in interest as well as freeing up some

much needed cash flow for you and the family !

Refinancing is a great time to re-assess your loan structure, as it gives you the

opportunity to get your broker to shop around for Australia\’s best home loan.

There are a few loan structures out there on the market, which will give you

exceptional flexibility and freedom. This means that you will never have to worry

about refinancing your loan down the track, which will potentially save you on

incurring more application fees, valuation fees, solicitor fees and stamp duty !

One of the latest stats in the mortgage industry is that the average Australian

refinances their home loan every 3.9 years. Now as we all know, banks are

exceptionally clever businesses. They are able to generate profits of up to $1

million p/hour per day.

During the first 5 years of your mortgage, the majority of your repayments will go in

interest (bank profit). When you refinance your home loan to purchase a car or go on

that holiday, the banks are quite cheeky as they reset your home loan clock back to

the start of another 25 or 30 year mortgage. Hence you start all over again, having

to pay back an obscenely large amount of bank profit (interest) for the first 5

years, and the vicious cycle begins again…..

Refinancing has become a valid option for many individuals with high interest rates

on their mortgage. Refinancing is essentially a replacement loan, with a different

lender and (hopefully) a lower interest rate.

What will it cost me?

Refinancing does carry some costs that you need to be made aware.

Valuation Fee This is the fee for a professional appraisal of the value of your

house.
Credit Report An assessment of your credit health
Lender Fees Any other fees that are incurred by using a particular lender
Stamp Duty – Government charge
Solicitor Fees – Drawing up loan documents

All of these costs vary from lender to lender, but we are able to get you the best

deal with the lowest interest rates and costs !

To discuss your refinancing options with one of our consultants contact us NOW !