You could be saving thousands every year in interest repayments, not to mention the many other advantages and options that refinancing brings. here are a few:
1. Reduce your interest rate
The lending market is very competitive. Banks and non-bank lenders are continually fighting for your business, and one of the main ways they do this, is by offering cheaper rates.
Even your own bank is more than likely offering cheaper rates to new customers.
If you have been with the same bank for as long as you can remember, then odds are, you are paying a loyalty tax. That's right. Contrary to popular belief, you sometimes pay more to remain with the same lender.
So jump online, look at what your bank is offering new customers on their website. If it is better than the rate you are paying, then is time to act.
Call your mortgage broker and request a rate review. If you don't have a broker, please feel free to call us. We'd be more than happy to act on your behalf, at no cost to you.
2. Reduce your fees
Your current bank or product may be charging unnecessary fees for features you don't even use. The most common we see, paying up to $400 per annum for a package fee. That's $12,000 over the life of your loan.
A lot of products have been introduced to the market, that essentially do the same thing and charge a hell of a lot less. Again, speak to your broker about reducing your costs and fees.
3. Debt Consolidation
Are you constantly stressed at paying off 3 different credit cards, a car loan, and a mortgage? All of these loans have varying rates, some upwards of 20% interest (we're looking at YOU credit cards!).
Get rid of them.
Consolidate all of your loans in to the one low, home loan rate. That way, you'll only have to worry about one payment per month, at one low rate.
4. Get cash out to Renovate
If the value of your property has risen, and you now own a larger chunk, did you know that you can access that cash to make improvements to your house. New flooring, a landscaped backyard, or maybe even a new kitchen could be on the cards.
Again speak to your broker about whether this is appropriate for your situation.
5. Get Cash out to invest
It's not just about renovations you can get cash out of your property to do a varying array of things. One of the smartest being, invest. This could be a deposit on an investment property, a portfolio of shares, or even a the purchase of gold or silver bullion.
This portion of your loan could also bring tax efficiency to your loan. Talk to your broker or financial adviser about the different strategies available such as debt recycling.
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