Top 6 reasons to refinance your Home Loan
We’re always looking for a way to save 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 think why it’s important to
review your home loan.
1.Is my rate still current? In my experience, many people know what
their monthly payments are, but they tend to ‘set and forget’ what their
interest rate is. You may find that your interest rate was good when the
loan was set up but not for today’s market. If your interest starts with a 4,
speak with a broker to find out how much you could save.
2.Look outside your existing bank. A lot of people go with the bank that
they bank with as they believe they will get a better deal. Look outside
your existing bank and really compare how much you can save. Using a
broker to compare numerous lenders can really cut down the work load
3.Debt Consolidation. If you have credit cards, car loans or personal
loans refinancing your high rate loans into a low rate home loan can
provide you an opportunity to reduce your total interest cost and make
one easy payment.
4.Unlock your equity. Most Australian homes have increased in value
over the last few years and not a lot of people realise that they can
unlock this growth for a number of uses. Looking to renovate? Buy that
new car? Go on a holiday? Start that investment portfolio? unlocking
your equity can potentially achieve this for you.
5.Budgeting. Have your circumstances changed since you set up your
home loan. Reviewing you home loan can allow you to change packages
to suit your current lifestyle and tailor it for today’s needs, or simply
changing your repayment frequency to pay off your loan quicker and
easier to budget for.
6.Does it matter? Realising that a .5% discount on your home loan really
counts. For example, a $300,000 mortgage at 3.75% vs 4.25% is a
saving off around $30,000 over a 30-year period. A little bit counts.
Why not speak to the team at Yellow Brick Rosanna to find out how you
could save more @Rosannaybr.
Interested in learning more? Click here.
To get in touch with your local YBR Adviser contact Kyle Goldsmith,
YBR Wealth Manager on 1300 789 150.