Although refinancing your current home loan may seem like a large up-front investment, know that the initial cost will be outweighed by the amount you will pay in interest for the long term. Read on and discover the benefits…
Smart Australians refinance thier home loans every 4-5 years, but certain circumstances can necessitate earlier refinancing.
The main objective of refinancing is to find another mortgage with a lower interest rate or repayments. This will give you a breather and divert the balance to something else, like investing in more properties.
Now is the time to check with your current lender to see if they can have a more competitive rate as announced by Reserve Bank of Australia recently.
You should also look around at the rates and specials, offered by different lenders, as well as the cost involved in switching over to another lender. Be informed that you are not locked in for life, you can refinance and switch to another home loan at anytime. We are in a competitive market, you have the right to find good deals anywhere. You will not be penalized!
C J Investiment long term partner, EK Property Group and Finance, are currently offering home loan refinancing incentives this month(August) only, to any home owners who wish to have their current home loans reviewed and advise them of the best lenders out there that suits your situation for refinancing. You will be amazed of what you will save…
What are the costs involved in refinancing?
Discharge fee-This is the fee you pay to your old lender to close down the existing loan and fee ranges between $100-$200. But if you have a fixed loan, you may be charged an extra break fee for ending the contract.
Application fee- This is a fee your new lender will charge you to cover the processing the cost of processing of your documents, including establishment fees,valuation fees,mortgage registration fees and settlement fees. This can total up to $1000.
Fast Track Refinance fee-Also known as Title Insurance fee. Depending on the lender,you may be asked to pay title insurance to cover the period your property tittle is officially transferred and the cost may be between $500-$3000. Some lenders will cover this cost an an incentive. That’s why you should have a good broker who serves your interest and EK Property and Financing is a good company to work with.
Lenders Mortgage Insurance- This when you are refinancing a larger loan or you haven’t reached a 20% equity on your current loan. The fee varies from lender to lender, usually in thousands of dollars.
Lawyer’s fees- To ensure your home loan is legally-binding, your broker or lender will typically enlist a solicitor to prepare your loan documents on their behalf. These are sent to the solicitor for them to review, and back to you to sign. We recommend Optimum Lawyers who specialize in conveyance and property acquisition.
Are you looking for a more competitive mortgage that gives you greater flexibility? It could be time to discuss your home loan options with an EK Property Group broker. They have extensive market knowledge and have helped thousands of people, just like you, to secure a competitive mortgage.
Although refinancing your mortgage may seem like a large up-front investment, however know that these initial costs will be outweighed by the amount you need to pay in interest fees if you did not refinance.
Recap of advantages of refinancing your home loan
1.To reduce the interest rates on your existing home loan. This will in turn lower your monthly repayments and allow you to build equity in your home at FASTER RATE.
2.Able to switch from a variable rate home loan to a fixed rate to give you more security against the floating property marker. And this is the right time to switch when interest rates are at their lowest in the history of Australian economy.