70% of homeowners think NOW is a good time to refinance
The majority of Australian homeowners think they should refinance their home loan now. And according to the Australian Financial Review, more than 26,000 families DID refinance their home loan in March 2020, equating to $11+ billion in lending.
However, many have not as they don’t know what the process entails. So, what does it exactly mean to refinance your home loan and how do I refinance my home loan?
Coronis Financial Services Director, Tyson James, explained refinancing is the process of taking out a new mortgage, often at a lower interest rate, to repay the existing loan.
“When you refinance your home loan, you have the option to stay with your current lender, or potentially you could save thousands of dollars each year by switching to another lender with more competitive rates,” Mr James said.
“When you refinance, it not only gives you the opportunity to potentially secure a better deal, but it can unlock equity in your property which you can use for a renovation or extension for example.
“Alternatively, you can use the extra money to consolidate debts, as a deposit for another property or you can choose to not touch it at all, and simply switch loans in an effort to pay it off even faster.
“With everything that has been happing during the recent months due to the COVID-19 pandemic, the RBA have dropped the cash rate to historical low of 0.25% and we’ve seen a lot of mortgage holders jump on this and take advantage of the competitive rates on offer.
“In the past three months, approximately 80% of all loans written by our team have related to refinancing. A lot of investors and homeowners have realized that if their interest rate is above 3%, that they are probably paying too much.
“By refinancing, they can access rates as low as 2.09% and save on their weekly / monthly repayments. All it takes is a 15-minute chat”
So how does refinancing work?
- Contact our Mortgage & Finance team to speak to a broker. Depending on the terms and conditions of your current loan, the costs to exit your current loan will vary however your broker will walk you through all of this.
- They will review your current position and then compare all the available home loan lenders and their products to see who will be the best fit for you and your situation (did you know there is more than 40 lenders to choose from?)
- Once you make a decision on who you’d like to switch for and the type of home loan you want, your broker will manage all of the exit paperwork and set up the new loan and accounts for you.
- On the day of settlement, you will cease paying your current loan and start paying off the new loan with the lender you choose.
It’s our job to walk you through every step of the way and provide the best advice possible for you to decide. We're specialists when it comes to all the types of home loans available... it's what we do all day, every day.
And the best bit… we do all the work for you and it won’t cost you a cent. Yep, that’s right. It won’t cost you a single cent to use the services of a mortgage broker.