Should I Refinance?
Gone are the days when we stayed with the same loan or lender for the full 25- or 30-year term of a home loan- the mortgage market is now very competitive
Regardless of a changing landscape, any decision to refinance your loan should consider your individual circumstances, your current needs AND your future financial goals. As your finance specialist we can assist!
When should YOU consider refinancing?
Increased equity in your home
Perhaps it’s time to consider an investment property?
Children starting school
It is not unusual for parents to spend between $10,000 and $19,000 on long day care. What will you do with your savings once you are no longer are paying fees?
Re-entering the workforce
With kids finished daycare and off to school, maybe mum has gone back to work? Any increased income is a good reason to review your finances and perhaps even consider investing.
Finally paying off your car loan
Before you decide to buy a new car, do you realise that same amount you pay on your car loan each month could possibly allow you to enter the investment property market?
Children finally leaving the nest
What a great time to ensure you are effectively planning your retirement income and lifestyle.
What benefits may result from financing?
Lower rate= lower repayments
As your financial specialist, we will explore your personal circumstances to determine if refinancing is suitable for your particular situation
Improved loan features
If you’ve had your home loan for a few years refinancing may provide new loan features that will allow more flexibility such as: Repayment flexibility- the ability to make extra repayments could also result in a reduction of the loan term and interest payable.
Now the question is… Should I refinance?
Redraw facility – allowing you to redraw from your extra payments when required.
Flexible rates- switching between a variable and fixed rate or splitting your loan between the two may assist you to manage your mortgage in line with interest rate movements.
Portability- taking your loan with you if you move could save on fees.
Eliminate features you don’t need- perhaps you no longer require some features of your current home loan? If so it may be worth talking to us to explore loan products more suitable for your current situation?
A loan with extra features will generally attract a higher interest rate and a ‘no frills’ loan will have a lower rate. Suitability will depend on your individual financial situation and the overall benefit provided by a product. Is it worth paying extra for features you don’t require?
Ask yourself.. How often should I review?
Here at GV Finance Brokers, we recommend an annual home loan check-up.
Call the office TODAY and we will be happy to book you in for a review
Phone No. 1300 881 579