Should You Refinance Your Home Loan?
Having all your financial ducks in a row is a great way to start the new year, and a review of your home loan should be right at the top of your financial “to do” list. If you are unsure about whether you may benefit from a potential refinance, we have compiled a list of mortgage holders who should be reviewing their loan portfolio.
1. Anyone who has not reviewed their loans in the last three years
It’s no secret that the last couple of years have seen a huge shift in the lending landscape and how banks price their loan products. The net result is it’s now a consumer’s market and the discounts being offered are far and above what were in the market a few years ago.
2. Anyone with both Owner-Occupied and Investment Loans
As the finance landscape has changed, so have the goal posts for mortgage pricing, with most lenders now having higher rates for investment lending and interest only products. However, the question to ask yourself is, do you have the best of both worlds? It may pay to have your rates checked, particularly if you want to ensure you are maximising your investment returns.
3. Anyone considering renovating or doing home improvements
Are you thinking of renovating? It’s easy to unlock equity you may have in your property to complete some much needed or longed-for renovation projects. At the same time your existing lending can be reviewed and most likely rolled into a cheaper product.
4. Anyone who originally paid Lenders Mortgage Insurance (LMI) but has since acquired more equity
Whether it be through paying your loan down or by acquiring equity through capital growth, if your original loan to value ratio was above 80%, then there is a good chance you were unable to secure the full interest rate discounts your lender had on offer due to being in LMI territory. It could be worthwhile seeing what you may be able to secure now.
5. Anyone who does not know what their rate is.
If you don’t know what your rate is then the chances are it’s not as great as it could be – so now’s a good time to check! There are still great loan products below 4%, even for investment, and chances are they are not going to be around for ever.
6. Anyone who wants to pay off their loan quicker
Let’s face it, who doesn’t want to get rid of mortgage debt as fast as possible? The only way to achieve this goal is to get serious about it. Getting a competitive rate is the first port of call, followed by a clear strategy for tackling your debt as swiftly as possible by arming yourself with all the right tools.
There’s no better time than the present to look at reviewing your options, and with sharp deals and enticing incentives on offer, it’s time to see if there’s something better available for you and your finances.