One of the biggest mistakes you could make in relation to your home loan is to ignore reviewing and evaluating your mortgage every two years. If it’s been longer than two years since you last reviewed your mortgage you could potentially be missing out on thousands of dollars in savings.
Here are some good reasons why you should definitely consider refinancing your home loan today:
Record Low Interest Rates
A lot of people have been recently refinancing their home loan to take advantage of Australia’s record low interest rates. Refinancing now could mean securing a lower interest rate and reducing your monthly repayments. And who doesn’t like more money back in their pocket?
Switch Between Variable & Fixed Interest Rates
Another reason to review your Home Loan is to consider switching between variable and fixed interest rates. If you would prefer the certainty of a set interest rate you might want to change to a fixed interest rate. However if you’d like to take advantage of a lower variable rate and are okay with the extra risks then you might be interested in changing to a variable interest rate. Variable rate loans are generally more flexible with regards to extra repayments and the ability to redraw on your loan.
Get A Better Deal With A Different Lender
Refinancing your home loan can sometimes mean moving from your current Bank or lender to one that offers lower rates or a better deal. There are a lot more lenders in the Australian finance market than you’d probably think. There are other options besides just the Big Four Banks such as Credit Unions and Building Societies. Here are the 25 lenders that we have access to:
And since the market is so saturated, lenders have been introducing more competitive products to the market. What does this mean for the average borrower? More potential for savings!
However refinancing does involve some costs such as Mortgage Discharge fees, Government registration fees and possibly loan application fees. So before you consider refinancing your home loan talk to your mortgage broker who can get you a deal that suits your individual needs.
If you would like to know if refinancing your home loan is right for you I would like to offer you a no-obligation, free home loan health check.
If you have any questions about refinancing, give the experts a call on (02) 5317 5114 or send us an email at barry@smsloans.com.au. We would love to help you!