Time to Refinance? – Get a Free Measure and Quote
A Free Measure and Quote for a Better Mortgage !
Mortgage Rates have moved up significantly from their lows in the early days of the Global Financial Crisis. Rates are now close to what would be considered normal levels. There is speculation about a further rate rise due to the underlying strength of our mining boom fuelled two-speed economy. On the other hand, there is a case for a fall or hold due to the sluggish retail and housing sectors and a general lack of consumer confidence.
Home Lending has been down for a while and competition between the majors is “red hot” for what’s available. The NAB led the charge with the “Break up with your Bank” campaign and all others are fighting the same game and trying to keep their customers from leaving.
This is a great time to review your current mortgage, as there are significant savings to be made. The many offers usually look better than they really are, but in this new world of no exit fees, borrowers can change loans without much cost at all.
We recommend the use of a broker to conduct a full review and comparison of what you’ve got versus what you need and what’s available. Refinancing, may not be as expensive as it recently was, but it is an extremely testing exercise in terms of new lender paperwork and processes to get a new loan approved and settled. Unless the new facility can deliver a substantial saving and more suitable/flexible loan structure we would not recommend a switch. Changing teams for a few points saving in the short term will often be washed away with the next rate rise (or fall) above the RBA passed on by your lender.
Fixed Rates are another complication for borrowers. Generally less than 20% of borrowers choose to take a fixed rate loan. Fixed rates are very rarely at attractive levels close to or less than the variable rate. Choosing a fixed rate gives borrowers certainty for the fixed period but usually at a cost considerably above the variable rate of the day. Banks never lose money selling fixed rate loans, however borrowers equally rarely see times where their fixed rate is lower than the market. Fixed rates have their place but need to carefully assessed.
Ask us about a free Home Loan Health Check service. We are happy, at no cost, to review your current home and/or investment property loans and confirm that you have an appropriate loan product and competitive rate/fee structure with your current lender. If a substantially better outcome can be achieved by using an alternative lender or product, we will provide detailed research and our recommendations.
Many borrowers, particularly those who arranged their loans more than 5 years ago, will discover that they have a quite inflexible mortgage structure. The modern features in many loans today, were simply not available a few years back.
Some Modern Loan Features
- Offset account
- A mix of variable and fixed rates
- Redraw facility
- Repayment holiday period
- Revolving line of credit
- Direct salary crediting
- Credit card sweep facility
- Fee free internet banking
Multiple loan accounts
So what benefits could I achieve by refinancing now?
There are many potential benefits that you might achieve by refinancing in the current market.
- Take a combination of say half your mortgage at a fixed rate and the remainder variable for a period of 1 to 5 years.
- Change banks and get a better, cheaper and more customised finance package
- Take a revolving line of credit mortgage and use the equity in your home
- Getting a better deal and superior more flexible loan structure is a prime objective of refinancing.
As part of the exercise you should consider your current and future finance needs:
- Investment – share portfolio
- Renovations
- School fees
- Car purchase
- Investment property purchase
- Debt consolidation
- Family holiday
So order a free measure and quote!
Buyer’s Choice provide a free “measure and quote” for borrowers looking at their refinancing options. We provide a side-by-side comparison of your current loan arrangements with loans and options of over 25 other Lenders.
You will be amazed just how much interest and Bank Fees can be saved, to say nothing of the improved flexibility and easier access to services without the need to visit the Bank for transactions.
Call us to discuss your needs. We can then arrange a time for one of our Mobile Managers to visit you and conduct the Free review.
At Buyer’s Choice we provide professional advice and finance solutions. We provide our clients with the choice of products from 25 major Bank and non Bank lenders. The loans we arrange include all available discounts and fee concessions.
