Why NOW is the best time to refinance! Dec 16, 2019 | Home Loan The end of the year is coming quickly, and it’s at this time that many people start to evaluate their financial situation and set financial goals for the New Year. A home loan is usually the biggest expense for Australian households, and refinancing your loan to a better deal can often save tens of thousands of dollars over the life of the loan. Your Finance Adviser has access to great deals with Australia’s Big 4 banks and a number of smaller lenders, so we are perfectly positioned to help negotiate a better deal for your home loan. We also have access to exclusive broker rates from major lenders, so can often access a better rate than you may be offered in a Branch. Cash Rate At the time of writing, Australia’s cash rate is at a record low of 0.75%. Every lender charges their own premium on top of this rate, but it means that variable rates are the lowest that they’ve ever been. Bank Competition As a result of the fallout and loss of revenue caused by the Royal Commission, banks are now competing neck and neck with rates and customer service in order to rebuild their reputation in the Australian market. It has also given rise to new smaller lenders, which add even more competition to the financial marketplace. The results are excellent for consumers, with some lenders offering thousands of dollars cash-back for loan refinances. Many lenders are also waiving loan fees and even covering government charges. Lock in Low Rates for the Future If you’re looking for some financial stability over a period of 1-5 years, now is the perfect time to refinance to a fixed-rate home loan. Locking in a low rate now may mean you can save thousands in future if interest rates rise. On the other hand, if your fixed rate is due to expire in the next few months it may be a good idea to start looking at other options now. Your Finance Adviser can conduct a review of your current loan and financial facilities and advise as to whether you are getting the best deal. In some cases, it may even be possible to break your fixed rate contract and move to a lower rate whilst still saving money. Many individuals who locked in their home loan rate 3 or 4 years ago when rates were much higher are finding that breaking the contract will actually save them money over time, even taking into account the break fees. Build, Renovate or Invest If you’ve been thinking of building, renovating or investing in more property, now is a good time to take advantage of super-low interest rates and get started on your project! Depending on your equity and income, you may be eligible to increase your home loan amount to fund the necessary expenses. Refinance Today If you’re still not sure whether a home loan refinance would be right for you, get in touch with the experts at Your Finance Adviser for a free home loan review and we will walk you through the options available based on your personal goals and
