How certain are you that your current mortgage is the best value for money in the current market?
If you are with one of the big banks I’m confident you may not have the best deal around.
If you’re paying more that 4% for the loan against your own home, now is a great time to have your mortgage reviewed.
The top rates are all well below 3.8 per cent these days so there’s no reason to be paying any more than that. The big four banks’ owner occupier variable interest rates remain much higher than smaller lenders.
Yes, it’s a bit of paperwork, but switching to the cheapest rate borrowers with a $300,000 30-year loan, you could save about $75,000 in interest charges over the life of the loan.
I’d much rather see you enjoying those savings, than improve your lenders bottom line.
There are a few good reasons to think about home loan refinancing, including:
- Taking advantage of lower interest rates
- Accessing current home equity to finance other purchases/renovations
- Consolidating debt
The only time to consider refinancing is when you are certain it’s in your best interest.
Remember to weigh up all the costs involved, and don’t forget to discuss your situation with your current lender first as they may be able to offer you a great solution that will save you time and money.
Spring is the perfect time to clean up your finances and review your home loan rate to ensure your home loan is still competitive in today’s market.
Refinancing can be a great financial move if it reduces your mortgage payment, shortens the term of your loan or helps you build equity more quickly. When used carefully it can also be a valuable tool in getting your debt under control.
As a financial adviser and mortgage broker I can compare home loans and provide advice on debt reduction. There may well be a more suitable option for you, which fits your financial situation and lifestyle better than your current loan.
Just as I encourage you to call your utilities and phone providers for better deals, you should be doing the same your lender. If you can save thousands of dollars a year in interest, then that’s a job worth doing.
Time for us to have a chat, don’t you think?
