The secret lies in the fiercely competitive nature of the

mortgage market. Lenders are constantly vying for your

business. They are offering enticing deals and lower

interest rates to attract borrowers.

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The Reserve Bank of Australia’s (RBA) interest rate

decisions play a crucial role in influencing the mortgage

market, and staying informed about these changes can

help you identify opportune times to refinance.

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By switching to a new lender or renegotiating with your

current one, you may secure a more favourable interest

rate and significantly reduce your monthly repayments.

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Consider this scenario

You have a $625,800 mortgage with an interest rate of

7.36%. By refinancing to a loan with a 6.21% interest rate,

you could save approximately $488 per month or $5,856

annually. That’s a holiday!

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Over the lifespan of a 30 year loan, that amounts to a

staggering $175,348 in savings over 30 years.

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However, the benefits of refinancing extend beyond

interest rate reductions.

It also offers you flexibility:

Consolidate debts

Combining high interest debts, such as credit cards

or personal loans, into your home loan may save you

money on interest and simplify your repayments.

Access equity

If your property has appreciated, you may be able to tap

into your equity for home renovations, investments or

other financial goals.

However, it’s important to be aware of the risks

associated with accessing equity as it can increase your

overall debt.

Change loan features

Refinancing allows you to switch to a loan with features

that better align with your current needs, such as an

offset account or redraw facility.

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Refinancing might seem complex, but the process is

surprisingly straightforward. Here are the steps:

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1. Review your current loan

As your finance team, we can assess your current

interest rate, fees and features. We will then compare

it to other loan options available in the market to see

if we can find alternate finance options that could

be more beneficial to your circumstance.

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2. Seek expert advice

Our experienced finance team can be an invaluable

resource. We can help you compare loans from

various lenders, negotiate with your current lender

and guide you through the entire refinancing process.

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3. Apply for a new loan

Once we’ve identified a suitable loan, our finance

team will assist you to complete the application

process to ensure a smooth transition.

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4. Settle your new loan

Your new lender will pay out your existing loan and

you’ll commence repayments on your new loan

with potentially lower interest rates and improved

features.

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While refinancing does involve some costs, such as exit

fees, application fees and government charges, these

are often outweighed by the long term savings you can

achieve.

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Don’t let apprehension deter you from exploring

refinancing. With the assistance of our knowledgeable

finance team, refinancing can be a seamless and

effective way to take control of your mortgage and

unlock substantial financial benefits.

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Keen to know more?​

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Disclaimer: This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is

appropriate for your circumstances. Your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should

always seek professional advice in relation to your individual circumstances. ©2024

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