Real life refinancing
Would you appreciate an extra $300 in your pocket every month? Who wouldn’t! Reviewing your home loan options when you already have a mortgage is easy to pop into the too hard basket. But it could save you a lot of money and I can do most of the legwork for you.
There are several reasons refinancing may help you achieve your goals faster. It could be to access equity for home renovations, for a holiday or to invest. It might be to pay off your home loan sooner by saving on interest or fees and charges. You may need greater flexibility now or want to reduce risk by fixing your repayments over a period of time.
There are a few different types of refinancing. You may be able to switch mortgage products and stay with the same lender or you could switch lenders for a more suitable loan. There’s also an option to do a partial refinance where a portion of the loan is switched to another product.
Real life examples
To help you understand the potential savings, here are three examples where Loan Market clients have recently refinanced and saved up to $337 a month.
Case study one
Anna was paying $1,205 per month on her existing home loan of $285,000. Through refinancing she now pays $1,150 - a monthly saving of $55. With the equity in her property, Anna was able to purchase an investment property for $385,000.
Case study two
Katie came to Loan Market determined to pay off her mortgage faster. Through refinancing her monthly loan repayments of $1,892 were cut by $337. By continuing to pay $1,892 each month she’ll save over $98,000 on interest over the life of her loan and reduce her loan period by nine years and eight months.
Case study three
Adam was paying $1,975 per month for his $312,000 home loan and was looking to move. By refinancing his loan he has saved $308 a month and was able to use the equity in his property to purchase his new home. Adam now rents his other property out as an investment.
Some things to consider
There are some factors I’ll review to determine if refinancing is the right move for you. There are costs involved in refinancing your home loan so it may not be the best financial move for everyone. These costs include government charges to switch (to give you an idea, it’s a maximum of $250) and any lender application fees. Aside from any applicable costs, some other things I’ll review are:
- Your repayment history or changed financial circumstances
- How high is your loan-to-value ratio (LVR)
- Is your loan amount too small (this is a nice problem to have)
When reviewing your situation, I’ll be looking for an opportunity to save you money and put you in a better financial situation within a year. If you’re wondering if you would be better off refinancing your home loan get in touch.