often come into the Balmain branch of Yellow Brick Road to review and improve
their financial situation. We’re always looking for way to save the residents of Balmain
money, but one place where people forget to look also happens to be
their biggest household expense: their mortgage. And I believe the reason why
people don’t look closer at their home loan is because the idea of refinancing
seems too difficult, too confusing, or is perceived as probably not worth it
for the effort. If you’re one of those people, it’s time to ask yourself some
- What’s my
mortgage interest rate? In my experience,
many people know what their monthly payments are, but they don’t actually know
their interest rate. Do you? Take a look – if it starts with a “4”, you can
probably do better and I’d advise shopping around.
- What does the
market say? At Yellow Brick Road
Balmain we have access to a huge range of mortgages and can easily search
through them. The current market for variable rate mortgages runs
from high three percent to over six percent. Three-year fixed rate mortgages
range from the low fours to well over six per cent. There’s a lot of
difference, which means there’s solid scope for savings.
- What could I
save? Use the comparison sites to calculate several results. If
you have a $350,000, 30-year loan with an interest rate of 5.24 per cent, and
you refinanced to a rate of 4.74, you would save $107 a month and $38,480 over
the life of the loan. As a
mortgage broker, we can easily calculate the savings for your situation.
- What must I have?
Have a good repayment record with your current lender and ensure you are not
currently in arrears. Also, know that if you’re half-way through a fixed-rate
loan you may be charged a break fee to leave, but
don’t worry we will factor this into the decision for you.
- What are my other
costs? A new lender will likely charge upfront fees, and
there may be some costs to exit your mortgage. As a mortgage
broker, we don’t charge for the services we provide as we are paid by the
lenders for setting up a new home loan.
- Who do I see? Go
to a mortgage broker directly as they have access to a whole panel of lenders
and can compare hundreds of loans in the one place.
Mortgage brokers are refinancing experts
who know how to streamline the process.
- How long will it
take? Your mortgage Broker will give you a run-down of the
process, the application, the documents they want you to provide, and the time
it typically takes.
- Is it worth it?
At Yellow Brick Road Balmain, my team is here to crunch
the numbers and tell you how much you can save. Often, the answer is yes.