The market is constantly changing and so is your mortgage, but we are here to help you with maximising the benefits available, as your personal circumstances also change and the current loan may no longer be suitable for you.
When was the last time you reviewed your home loan? It might be time to shop around and make sure the rate you have is the best rate and similar to what other banks can offer you. There is a common phrase called the ‘Loyalty Tax’ where the banks offer the most attractive rates to the new customers to get business, whilst not sharpening the rates of the existing clients or rewarding them for staying with them. For more information on interest rates, have a look at our interest savings calculator here.
As the market continues to grow, the real estate prices increase which will give you more equity in your home and this can result in better interest rates. The Loan to Valuation Ratio (LVR) once under 80% means you can refinance without having to pay Lenders Mortgage Insurance (LMI) which can give you the capacity to borrow more for personal reasons too, but also more attractive interest rates.
You are able to refinance and get some extra money, which may be for renovations, asset purchases (car & caravan), home improvements or debt consolidation. The greater the equity in your home, the greater amount you can borrow, however when you exceed 80% LVR you must pay LMI which can be expensive.
This is a great way to reduce all your debts into the one facility and just make one repayment per cycle, instead of multiple. Refinancing your mortgage also can help to increase the value of your home through the completion of renovations or improvements.
If you want to start looking at your options and getting on top of your debts, get in contact with us!
