The life of the average home loan these days is less than five years, this is probably not the first time you hear about it. As a mortgage broker our job is simply find you a loan suitable to your needs and provide highest possible customer service. Below are the major reasons of refinancing your home loan and as your mortgage broker, we are here to help you getting into the most suitable mortgage product.
Why refinancing?
Things to know:
Lenders/banks are in competition in the home loan market therefore lenders/banks competition will produce a hot deal or offer
Say you are with bank A who had a very good promotion at that time you took it, today, YES TODAY (so dont delay!) surely there are better home loan product than what you currently have.
Saving 0.25% is still a saving, there are no little savings or not worth savings. Savings is SAVINGS and it will add up.
You will need different type of loan products depending on your current situation whether you are buying, selling, constructing, investment property or owncer occupied, business or non business purposes etc.
Understanding each banks/lenders loan products is the key to get the most suitable product for your needs. You dont have time or may be less time to search, compare and be on it every single day in your life. Our job is dealing with mortgage products every day so we are pretty much updated our knowledge as soon as there is any changes on banks/lenders home loan products, policy, lending criteria, fees, features, flexibility etc.
Many more that you need to know, please go to the relevant section to find out more.
Major reason of refinancing:
Find better deal. What is better deal? It can be better Rates, Fees or Features etc.
Savings any peny in a month can get you a plasma TV, holiday, kids toys or game consoles like PS3, a new bathroom, kitchen, cars etc depending on the amount saved.
Simply putting the savings back into the mortgage in order to pay off the mortgage quicker.
By savings dollars each month is not only reducing your repayments and saving you interest over the term of your loan but most importantly is to pay it off quicker or reduce the years on your mortgage.
You are selling and buying another property for investment purpose or different purpose. For example, most investor wants lowest possible rate and fixed it for some period of time. Their purpose is to take advantage of higher rent value and at the same time still paying the same interest to the lender.
Renovating your home or investment property. Take advantage of your home equity to fund your purpose instead of credit cards or personal loans which attract higher rates.
- Change of circumstance. Paying school fees, cease of employment, entering into self employment, downsize or upsize your property etc.
Debt consolidation. Put all credit cards, car loans or personal loan into one will make it easier and also saves you interest as generally home loan rates are much lower than any of all that loans.
