A mortgage refinance is a great opportunity to reassess your financial situation. Since taking out a loan your priorities may have changed, you may want to repay your loan faster or cash-out some equity to do some property improvement. Or, you may just want assurance you’re on the best rate possible. Whatever the reason, we’ve put together the when, why and how to refinancing your property.
saving with a refinance
While not the only factor to consider when deciding on a mortgage lender and product, reducing your interest rate can assist you in maximising your refinancing goals. What seem like minuscule shifts in percentages between lenders can end up a large sum in the long run – how much can 0.5% save you? We show you here.
THE COST OF REFINANCING
Balance the costs from your outgoing and incoming lenders, as well as government charges, against the potential savings. Compelling rates and offers can make a refinance look appealing, but you should always weigh this up against the potential costs in the short– to long–term. We’ve put together a general guide of what out-of-pocket expenses here.
TYPES OF REFINANCING
Be aware of the different sorts of refinance and what will suit your financial situation. A refinance can allow you to adjust your mortgage as your property and finance goals shift and evolve. Let’s chat through your options here.
THE TRUE COSTS OF A MORTGAGE
You certainly want a compelling interest rate, but a comparison is where you’ll see the real costs you will encounter. The same advertised rate between two lenders does not necessarily mean two products will end up costing you the same amount in interest. Advertised rates can be appealing, we outline here why you cannot underrate the importance of the comparison rate when you are trying to maximise investment.
USE YOUR LVR TO MINIMISE YOUR RATE
Understanding the current property market and its effect on the LVR of your property could earn you a discounted rate. Many lenders offer tiered interest rates based on your LVR percentage, we outline the savings here.
preparing for a refinance
Speed up your application by ensuring you have personal and financial documentation available for your new lender to assess.
STREAMLINE YOUR REFINANCE
There can be a lot to be across when refinancing. A credit advisor is your best resource to help you at every step with timely, expert knowledge. We’d love to hear from you, contact us here.