The big question on everyone’s lips “Can I save Money on My Home Loan If I Refinance”? The answer is “ABSOLUTELY! Now what is the best time?”
This article predominantly focuses on refinancing to obtain a better rate. Other blogs on our website outline scenarios in which personal and market circumstances influence the opportunity for refinancing.
There is no hard and fast rule that can be applied to refinancing your home loan, however, there are some guidelines that you can consider.
Firstly, how long has the loan been in place? There is a tendency for home loan rates to increase depending on your lender and the state of the finance market. After 1 to 2 years, there is a possibility that your rate is no longer competitive. Additionally, some of the costs associated with your loan may have increased relative to other products in the market.
Secondly, you should consider the competitive nature of the financial market. In a low-interest rate market where rates are going down, the level of competition across lenders often increases. This scenario is generally a good indicator to suggest an opportunity to review your loan and obtain a better rate. When interest rates are rising, there is also an opportunity to refinance your loan to take advantage of a fixed interest rate. This strategy is often preferred by individuals and investors that like to manage their risk and have predictability in their interest rate for a specific period.
Thirdly, the entry of new lenders into the market can often create a situation where special offers are available to new clients for a period of time. By refinancing, you are able to capitalise on such incentives and save.
Refinancing a loan can often be time-consuming. You need time to go from lender to lender to establish what they offer, and you need time to prepare and submit an application to the new lender. With the lending criteria becoming stricter and banks becoming tougher to deal with it can be hard to navigate what offers you may be eligible for often resulting in wasted time and applications being rejected.
At Brisbane home loans we provide a Home Loan Health Check to our clients free of charge. As part of the Home Loan Health Check, we review your existing loan and compare your current rate and terms to the deals that are available in the market from over 40 lenders. We produce a report showing how much can be saved through refinancing and meet with you to discuss the findings and recommendations. Once you choose your preferred option, we do all the hard work for you until your new loan is approved and you bank the savings. Our service is free and guaranteed to be the best possible service.
To make an appointment and discuss your Home Loan Health Check, contact Brisbane Home Loans at 07 3889 9250 for an appointment. If necessary, we can meet you at home or your office.
Mortgage Brokers Are There To Help Those Who Need It Most
Mortgage Brokers have been able to assist First Home Buyers to enter the market, even with property price fluctuations. Of those who settled a loan through a Mortgage Broker in the September quarter of 2017, 23% of those were First Home Buyers.
First Home Buyers have been able to receive the benefit of education and insight from Mortgage Brokers over the years, providing First Home Buyers confidence when trying to navigate through the complex home loan application process.
And Australians Have Loved Them For It
The work Brokers have done for their clients has not gone unnoticed, with 90% of Brokers customers stating how happy they were with the service they received.
So, if you are considering entering the property market, upgrading or looking to refinance your home loan, having the helping hand of a Mortgage Broker can be extremely beneficial in long run.
The Real Value Of Having A Mortgage Broker By Your Side!
Deloitte Access Economics recently completed a research report into the value that Mortgage Brokers bring to the banking industry, and the benefits they have on Australian consumers, and the Australian Economy. In the September quarter of 2017, The Mortgage Broking Channel was responsible for writing over 55.7% of residential loans and contributing 2.9 Billion Dollars to the Australian Economy during 2016-17. So, what were the benefits for Australian Consumers?
Brokers Created Competition In The Market, Leading to Reduced Interest Rates
As Mortgage Brokers have access to over 30 different lenders, brokers are able to provide consumers access to a diverse range of lenders and products. With greater diversity available to Mortgage Brokers, it allows those smaller tier lenders without the branch network, to compete in the market. With the help of Brokers, smaller lenders have seen and increase from 21.4% to 27.9% in terms of market share over the past four years.
Without the access of brokers, smaller lenders would have needed to expand their branch footprint across Australia by an additional 118 branches in order to maintain their current market share.
Not only has greater choice become available to borrowers, but also increased competition. Over the past 30 years, lenders Net Interest Margins have decreased by more than three percentage points as a direct result of the broker channel. Providing Australian consumers, access to more competitive mortgage rates and products.
