Why Refinance your Home Loan in 2020
Now that the dust has settled on the holiday season and 2020 is well and truly underway, it may be the time to consider a refinance. A popular comparison website recently surveyed 1000 home loan customers and found that almost 20 percent of the respondents would never consider switching. But what are the reasons behind this complacency?
Interestingly enough, in a climate where “bank bashing” is a popular blood sport, many mortgage holders actually possess a deep sense of loyalty to their lenders and feel guilty at the thought of taking their business elsewhere. Couple that with those who have a ‘set and forget’ mentality hardly giving their mortgage a second thought after settlement along with those who simply think its too hard, there are many who stay put and potentially miss out on thousands in interest savings.
So, if you are one of the mortgage holders who has not refinanced for a long while or have never refinanced at all, we would like to put forward some compelling reasons as to why 2020 may be the year to update your home loan.
The rates are too good to ignore
No one can deny that interest rates have dipped to an historically low level with some lenders offering products less than 3%. Both fixed and variable rates are extremely competitive so there are great options all round. Furthermore, if you are an Investor, you would not want to miss out on an opportunity to maximise your returns with a great low rate.
Lenders will reward you
Lenders are falling over themselves to win your business. Not only are low rates there to entice you, but several banks are offering cash rebates for both refinance and purchase applications. These range from $2,000 to $4,000 per application depending on the bank. The cash back amounts should more than cover any change over costs that may be incurred from refinancing, with the residual yours to enjoy. Other lenders also have Frequent Flyer points on offer, the amounts varying from bank to bank. Either way, you could stand to benefit from a few thousand in cash or flyer miles to put towards your next holiday. But be warned, these will not be around indefinitely so we always recommend to act sooner rather than later before the offers are rescinded.
It doesn’t have to be difficult
Those who opt not to refinance do so out of the misconception that it’s a difficult process. In most cases it’s not that hard. However, when there is a more complex scenario involved, having a mortgage broker guiding you through the process and advocating for you with the lender makes the process much more seamless than if you attempted the process alone. As an added bonus, a mortgage broker will most likely be able to secure additional interest rate discounts than advertised by the lender so you will reap even more savings.
You can refinance with your existing lender too!
Quite often a refinance may in fact be achieved through your current lender. Your mortgage broker may be able to simply restructure your loans and change your products within your existing financier resulting in minimal fuss and a quicker turn around. In fact, a regular review with your broker to see what else your current bank has on offer is a must.
What are you waiting for? With low rates to help you save money and pay down your debt quicker, great incentives being offered by lenders to win your business and an experienced team in your corner guiding you every step of the way, we think it’s a no brainer. For more information on what options are available contact the Blackburne Mortgage Broking Team.