Refinance your home loan
How do you feel when your bank reduces their interest rates for new customers but doesn’t reduce yours? You’re a loyal customer, right? Yet you don’t get the better deal. How does that make you feel? It’s pretty awful but it’s a sad reality in Australia. Lenders always want to attract new business so they offer super deals to get new customers but sadly, many forget about you – their existing loyal customers.
BEING LOYAL MAY NOT GET YOU THE BEST DEAL
When Should I Refinance?
When You Want To Get Better Interest Rates
Imagine if you had a $500,000 mortgage with a 30 year term. If you could reduce your interest rate by 1%, you could save over $280 per month. That is a whopping $103,000 over the term of the loan. Now imagine if you still paid the higher amount into the mortgage that you are paying right now. In other words, if you just pretended you’re still on the higher rate and you continue to pay the extra amount into the loan each month. You could bring that loan term down to just over 24 years and you would save over $166,000. Now that’s got to be worth the phone call at least. Just pick up the phone and call us on 03 8560 5000. We can do a loan health check to see how much you could save
When You Want To Release Equity
So you’ve been paying off your home and the value has increased and you are now thinking of buying an investment property. That’s a great way to build wealth. The equity in your current home can be used as the deposit on your investment property. You may not need to contribute any cash at all – how great is that.
Or maybe you love your home, you love the area but you just want to do a minor renovation to spruce it up a bit or maybe a major renovation or even an extension. The equity in your home will let you do the things you thought you could not do. Call the team at Finetiq on 03 8560 5000 to see how you could use your equity.
When You Want to Restructure Debt
If you have a few investment properties, you may have your loans in a bit of a mess with some cross collateralization. If you refinanced, you could restructure and remove the mess, making tax time so much easier. Your accountant will love you for it. You could also find that by doing so, you free up some more equity allowing you to invest even more.
Or maybe you have some credit card debt that you would like to clear. Many credit cards cost around 20% pa or more. By consolidating that debt into your home loan, your monthly commitment will be reduced considerably, helping your cashflow – who knows, your extra cash may be able to get you on your way to another investment property. Talk to us to find out how by calling 03 8560 5000 today.
When You Want That Trip Of a Lifetime
You’ve worked hard and you’ve paid down a good portion of your home loan. You feel that you deserve a good trip and you’ve always wanted to take that trip of a lifetime but just couldn’t manage it.
Refinancing your home and using equity is a great way to get the funds you need for that well deserved trip.
Imagine cruising down the Nile visiting the ancient tombs and ruins in Egypt, or taking a gondola ride in Venice. Just call us on 03 8560 5000 and we can work out how to help you turn those dreams into reality.
When You Want More Features
Your current loan may not have the features that you need – features that could help you pay off your loan quicker, or could help you during difficult times. Here are a few examples.
- An offset account– this is a bank account linked to your loan where every dollar you have in the account ‘offsets’ an equal amount on your home loan interest. That means if you have $5,000 in your offset account, and your loan balance is $400,000, you will only pay interest on $395,000. This is a great way to save interest and pay your home off sooner.
- Flexible repayments – some lenders have loans allow you to make extra repayments at no additional fee. This can make a massive difference to the term of your loan and the amount you could save in interest.
- Redraw facility – Making extra repayments then having that money available to be redrawn is a great way to give you some relief for a rainy day or to help you cover the cost of major purchase like a new TV.
- Repayment holiday – if you have made extra payments, taking a break from your loan repayments for a set period can help with life’s major events like having a baby or taking an extended overseas holiday.
- Flexible interest options – you could opt to go with either a variable, fixed or split rate loan.
- Portability – should you want the option of being able to refinance in the future, a portable home loan would give you the flexibility of being able to move your home loan to another without the expense of setting up a new loan.