Refinancing Sydney Mortgage
Refinance your home and you may be able to find a lower rate than your current rate or reduce the terms of your loan. Compared to some of the new loans and lower rates on the market, you may currently have a home loan that is not in the best shape.
The money saved can be put towards renovations, an investment property, consolidating debt, helping your children set up home or on a holiday.
There can be costs associated with a loan refinance so you need to assess the long term benefits of a lower rate against these costs. Exit feesLook closely at any exit fees your payable to your current lender if you switch loans. These can be reasonably low with some lenders, whilst other lenders may charge quite high exit fees. Next, look at any establishment fees on the new loan. It’s not just the interest rate that you need to consider, all the extra costs must be taken into account too.
For example, if you refinance and save $200 a month on your repayments, but your exit costs amount to $2000, then it would take you 10 months to break even. If you are planning in staying in the house for longer than 10 months then you will be able to save money long term.
Choose the right mortgageDon't select a new mortgage based only on its annual percentage rate. Shop around, consider long term benefits and short term fees. You may want to speak to mortgage broker if you are considering whether to refinance or to stick with your current mortgage. Also evaluate the term of the new loan and whether the interest rate is fixed or variable. Consider refinancing with your existing lender.Your current lender already knows you and has your financial history. Use this to your advantage and consider whether you may be able to get a better deal with them, rather than going to a new lender.
Using a mortgage broker can help ensure the costs of refinancing do not outweigh the benefits of a new loan. You will need to research different lenders and loan types, ask questions and consider your long term financial and property goals. Your mortgage broker can do much of the hard work for you and save you not only time but a lot of stress too! Depending on the terms and conditions of your current home loan contract, mortgage refinancing can be expensive. Make sure you seek our professional advice regarding the associated costs charged by your current lender.
Contact a Your Local Finance Broker on
and find out more about how refinancing can help you.