FY 2021– Best Time to Refinance? NOW

The last few months have been a challenging time for all Australians in the grip of the COVID 19 global pandemic impacting just about every industry and every sector of the community.  

Amongst all of this, many have reassessed their personal and family financial situations in the aim of becoming more efficient with household incomes and saving money where they can. Understandably, mortgage repayments have been part of this scrutiny and rightly so, given the significant funds directed to this area each month or in some cases, every fortnight. There is no better time than now to seriously consider refinancing your home loan to a more competitive product if you are in the position to do so. 

Over the last two months, we have spoken to many home borrowers who are still paying well into the mid - high 3% range for their home loan when they shouldn’t be! 

Let’s consider the potential savings in the following example:

If you have a home loan that has a balance of around $370,000 and you are paying 3.59% interest, then you should know we can most likely (subject to meeting qualifying criteria) refinance a large portion, or the full amount, to a fixed rate loan at between 2.19% - 2.39% depending on chosen lender. Now that’s a saving of between 1.2% to 1.4% pa which equates up to $413 per month or close to $10k over two years. That’s serious savings in any language! 

Even if you choose to keep part of your home loan on a variable arrangement, subject to meeting relevant qualifying criteria, we can pretty much guarantee something most likely with a ‘2’ in front in terms of interest rate, which will still help you save significantly on your home loan. 

It makes sense to review your home loan at least every two to three years just to make sure you are still on a competitive rate and identify any other home loan package that may be better suited to your individual circumstances. 

And finally, the RBA announced no change to the cash rate this month as we continue to work through this pandemic period as best we can. Please don’t hesitate to reach out should you have any questions around your home loan requirements, I am available on ZoomWhatsApp or even that Google Hangout thing people are raving about, or you can just call me on 0438 041 111 or send me an email at peter@vinci.com.au for a confidential discussion anytime.  

As always, enjoy life, work hard, play safe and remember that we are always here to help you

‘Take the Confusion Out of Lending’ 

All the best

Peter Vinci - 0438 041 111