When it comes to smart money management, the key to success is to regularly assess your financial position – and that includes taking a good hard look at your mortgage. Here’s why refinancing every three years may help you save, and why you should check in with us today to ensure your home loan is still the right choice for you.
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REFINANCING EVERY 3 YEARS MAY HELP YOU TO:
SECURE A MORE COMPETITIVE INTEREST RATE
Checking your home loan regularly gives you peace of mind that you’re getting the most competitive interest rate and that your financial needs are being met.
With RBA rate movements, lender rate changes and new loan products coming onto the market all the time, it’s quite likely there’s a better option available if you’ve had your home loan for a while.
ACCESS BETTER FEATURES AND SAVE
A home loan health check is about reviewing your loan against your current financial situation and goals to ensure it still meets your needs and suits your objectives. As your circumstances change – perhaps you have a better job or have started a family since you took out your home loan – the loan features you need may change too. A different type of loan could potentially help you to save money and manage your finances better.
ACCESS EQUITY TO BUILD WEALTH
Accessing your equity could be a fantastic opportunity to build wealth for your future and refinancing to a new loan could allow you to do just that. If you’ve had your mortgage for a while, you’ve probably paid it down somewhat and your property could also have increased in value, so you may have some equity you could use to buy an investment property, or use to purchase shares or other investments.
You could also use the equity for other things you want. Perhaps you need a new car, a holiday, or would like to use the money to pay for your children’s education? Maybe you’d like to put the money towards some home renovations that could ultimately drive up the value of your property. Whatever your goals, we can explain whether refinancing and accessing your equity will help you to achieve them.
If you have several debts with high-interest credit facilities like credit cards or personal loans, you could potentially make things more manageable by refinancing and rolling your debts into your home loan. In this scenario, you’d access some of your equity and use it to pay off your other debts. The benefit is you only pay the home loan interest rate, rather than the higher credit card or personal loan rates – although your home loan repayments will likely rise somewhat, you could possibly make some savings if you make an effort to make extra repayments to pay back the amount you withdraw quickly. Talk to us and we’ll help you determine if refinancing to consolidate debt makes financial sense for you.
As your mortgage broker, we are experts at finding the right home loan to help you achieve your financial goals. We’ll check out your current home loan and if it no longer has that youthful vigor you need, see if we can find a better alternative! But first, we’ll nut out the figures and make sure refinancing is the right move forward for you financially. So if you’ve had your current home loan for three years or more, give us a call today for a home loan health check. We’d love to hear from you.
FINANCE FOCUS | OCTOBER 2017
The information provided in this page is general in nature and does not constitute personal financial advice. The information has been prepared without taking into account your personal objectives, financial situation or needs. Before acting on any information you should consider the appropriateness of the information with regard to your objectives, financial situation and needs. You should seek independent advice from your financial adviser before making any decisions.
AUSTRALIAN MORTGAGE AND FINANCIAL ADVISERS (AMAFA)
Phone: 07 3378 2056
Fax: 07 3378 2069