Are you feeling more stressed about finances at the moment? Do you have some more free time than usual? Are recent interest rate cuts making you wonder whether your rate is still competitive? The world seems to have gone a little kooky lately but it may mean that it’s time to pay less on your home loan.
To all those doing it tough at the moment (and there are plenty), we want to re-iterate that we’re here to support you in any way we can, including explaining how lenders are providing relief during the coronavirus pandemic.
So where does refinancing come into play?
Well, the recent changes have combined to combined to create a situation where it’s time to give refinancing your home loan some serious thought.
Here are the top five reasons to consider doing so.
1. Reducing your repayments
Have you refinanced your home loan recently?
If you haven’t investigated refinancing within the last year, the landscape around lending has changed dramatically and it’s definitely an opportune time to look into it. There have been five rate cuts in the last twelve months.
The recent ACCC Home Loan Price Inquiry interim report found that borrowers who don’t refinance to another lender pay a ‘loyalty tax’ and that those who move to another lender or ask for an improved deal with their existing lender achieve significant interest savings.
If you’re worried about the current economic climate effecting your mortgage repayments, refinancing to a lower rate may be a better option than a repayment holiday.
2. Debt consolidation
You can also use refinancing as an opportunity to consolidate other debts, including your car loans, personal loans and credit card.
This is almost always at a much lower interest rate if it is wrapped up in your mortgage and you can also simplify your money management with one easy repayment.
3. Time to fix?
Fixed interest rates are at the lowest we’ve ever seen them.
It was only a few months ago that the lowest headline rate was in the high threes. With rates being what they are at the moment (our current fixed rates are from as low as 2.09% / 2.79% comparison), a borrower with a half a million dollar mortgage can save in excess of $10,000 per year.
With the official cash rate at 0.25%, there’s not much room for rates to get lower.
4. More free time
Refinancing your home loan is an easy thing to put off, especially given how time poor we all are. Right?
Well, I think that we all have fewer social commitments than usual at the moment, so what better time to get around to refinancing.
Once the ball is rolling, you’ll find that it’s much easier than you’d anticipated.
5. We’re here to help and to make it easy
You can rely on us to assist whenever you need, particularly in these difficult times. If you would like us to take a look at your current mortgage and see if refinancing is appropriate for you, we would be more than happy to assist. Our application process can be entirely online and contactless if that’s your preference too.