REFINANCE YOUR CURRENT HOME LOAN

There are always borrowers looking to refinance their home loans. Because, they are looking for a better deal; they may be unsatisfied with their current rates, or they are merely seeking better customer service.

So, even if you do not have any specific reason in your mind. It is always worth weighing up the validity of refinancing from time to time and around every three years is a good time to reassess your circumstances. As you may find that there are other more attractive products in the marketplace that will provide you with the flexibility, you may now need. By doing this after a three-year period, it will ensure you "minimise" the "get out / exit fee" charged by lenders / credit providers.

Refinancing Your Current Home Loan for Better Rates

Does Refinancing Make Sense?


There are many reasons why refinancing makes sense, for example:
  • Your current interest rate is not staying competitive
  • You may be looking to refinance and consolidate all your debts (e.g. credit cards and other personal loans) into one home loan
  • You may be looking for more money to invest in another property, or pay for home renovations

When does Refinancing "Not" Make Sense?


Before considering refinancing your current home loan, you should think about your circumstances and ask yourself the following questions:
  • Is getting a lower interest rate important?
  • Are my current debts getting out of control?
  • Since taking out my current home loan, has my credit history taken a hit due to outstanding debts?
  • Do I have uncertain income, such as being a contractor, casual or a freelancer?
  • What will be the impact of any fees and costs, such as:
    1. Will I be charged an exit / penalty fees for changing by another lender / credit provider?
    2. Will I be charged any entry, application and valuation fees by the new lender / credit provider? And
    3. What is the stamp duty costs and legal fees payable by me?

Advantages of Refinancing Your Current Home Loan and Consolidating Your Debts


There are advantages of refinancing your current home loan and consolidating your credit card debt into one home loan. You will find your total interest payable, and monthly repayments reduce significantly. And, you will be able to better manage your personal and household "budget", and you will benefit, in the same way as many Australians are already benefiting.

The advantages to you are best illustrated in the following example. The example assumes that you have a mortgage loan of $300,000 and a credit card with a credit limit of $12,000:

Home Loan Refinance Example

From the example above you can clearly see:

Your total interest payable will be reduced by $91,003 ($312,633 less $221,630)

Your monthly repayments will reduce by $401 per month ($2,179.00 less $1,778.00)

By refinancing your current home loan and consolidating your credit card debt into one loan will enable you to:
  • Lower your monthly repayments
  • Make only one repayment
  • Lower your interest rate
  • Reduce the amount of time it takes to pay off your home loan
  • Get yourself back in control of your debts much sooner than you anticipated
  • You will not have to experience the stress and pain of overdrawn or over the limit credit card balances
  • Reduce your debts (including eliminating the high-interest credit card debt or personal loan), and
  • You will not have to pay the higher credit card interest rates anymore

Tax Considerations


If the loan being taken out by you is for an investment property, and you want to claim a deduction for any expenses incurred while the property is being rented out. It is important, to always seek professional legal and accounting advice from your Solicitor and Accountant, in order to maximise any deductions.

Financial Health Check


Refinancing your home loan can offer you savings if you take the time to do some planning. It may now be a good idea to give your mortgage a "Financial Health Check" to see how your home loan compares and to see what else there is on the market. Remember to work out if you will be better off by switching to another lender / credit provider and if you will save money by switching.

Seek Expert Advice Today


If you are thinking of refinancing your current home loan, take advantage of our professionally qualified and expert finance brokers who will help you prepare a "Financial Health Check" on your personal finances to identify and advise you of your finance options. Our expert finance brokers have a thorough knowledge of the credit policies and standard requirements for home loans, as they liaise with numerous lenders / credit providers on a regular daily basis. They will also save your valuable time trying to source the right refinance home loan.

Contact Us Today


To find out more information regarding refinancing home loans as well as other finance or insurance needs, please call Singh Finance on 0424 190 908 or click on the "Enquire Now" form.

Address
Singh Finance Pty Ltd
P.O Box 4042
Parramatta NSW 2124
Ph: 0424 190 908
Fax No. 02 9608-6279

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