DID YOU KNOW: The mortgage that was right for you years ago, could be costing you right now.
Almost half of Australian home owners have never refinanced their mortgage, the results of a new survey by Aussie Home Loans has shown. Of the half of respondents who have refinanced, it happened, on average, more than two and a half years ago.
For renters and active home buyers, with the RBA keeping rates on hold again this month, it is helping to keep Australian properties more affordable.
For existing homeowners, current mortgage rates makes it easier to refinance into lower monthly payments.
So who should refinance?
Here are 5 types of homeowners that should consider refinancing.
1) Homeowners with mortgage rates over 4.5%
If we can save a homeowner even 0.5% on a 500k loan that is a saving of $2,500 per year in interest.
2) Homeowners paying mortgage insurance
Although mortgage insurance is paid once on the initial funding, however in some situations, we do look to refinance once a client has obtained 20% equity so can refinance to an improved rate at this point. We can often complete a valuation to determine if this is possible and it only takes 5 minutes.
3) Homeowners who have been previously turned down for a mortgage
If you’ve been turned down for a mortgage years ago, it could be a good opportunity to re consider your options. We can assist positioning clients for a mainstream, great rate loan.
4) Homeowners who haven’t reviewed their mortgage for over 2 years
If a person with a mortgage has not reviewed in the last 2 years it is highly likely we can improve on it considerably.
5) A change in your personal situation
In these economic times, people have lost their jobs, a change in salary or shifted to a one-income household and can’t afford their current mortgage payment. Saving even $100 a month could mean the difference between keeping their home or not. A refinance may to a interest-only loan may assist you in these situations.
And for people with extra cash, it might make sense to refinance from a 30-year loan to a 20-year loan for example.
Is it time for you to refinance?
If you don’t know where to start and think refinancing is time consuming, that’s where we can help!