Thought about refinancing ahead of further rate rises?
Rising interest rates will impact minimum repayments for variable rate home loan borrowers and could make budgeting a challenge, which is why moving to another loan may save money, time and stress.
Mortgage lenders continue to battle each other for market share by introducing more loan options, which can only mean good news for borrowers preparing for further rate rises.
As more loan options become available, why don’t more borrowers shop around more often?
Mortgage Choice, Australia’s largest independently-owned mortgage broker, believes the ever-changing property finance market provides a good opportunity to consider a home loan refinance.
Senior corporate affairs manager, Kristy Sheppard said, “Economic uncertainty has encouraged many Australians to stick with what they know, and many do so regardless of the economic climate because they get lazy and don’t shop around every few years. We are happy to be receiving calls from a number of borrowers who are determined to not sit back and let their mortgage manage them.”
Regularly reassessing your situation provides peace of mind that you are either doing the right thing by your finances or need to make changes.
“While interviewing 200 customers who recently received loan approvals, for our monthly satisfaction survey, Mortgage Choice found approvals for refinancing have started to edge up – increasing to 26% of customers in the October survey from 20% in August. This is a trend we see likely to continue as borrowers become more comfortable with their job stability, financial situation and the economy, and want to explore their options to better prepare themselves for the future,” Ms Sheppard said.
“Australians with home loans may be surprised by how much they could save through refinancing to a loan with lower fees and/or a lower interest rate, which is a great way to deal with further rate rises. Moving to a product that is cheaper overall, or has improved features, definitely has its benefits. However, understand the switching and exit fees and ensure the benefits outweigh the costs.”
“If you were offered $50,000 for doing a little extra work, you’d take it… why not take the time to visit a reputable mortgage broker and see if you can save yourself having to pay that money over the life of your loan, simply by changing loan products. Shopping around now can pay off in the long run!”
With the economy on its way up and new home loan options regularly entering the market, borrowers should reassess their financial needs now and see if their loan matches their situation over the next few years.
“Ahead of imminent rate rises, refinancing can be a smart way to manage your money and revisit your expectations for the year ahead. A regular home loan health check is a great way to keep on track. Every borrower should be doing this at least every couple of years to make sure they are making the most of their mortgage situation. A reputable mortgage broker can easily compare your current loan to those on the market, saving you time, hassle and possibly money,” said Ms Sheppard.
Some other reasons Australians refinance are to:
• Have more money at hand for day to day living
• Consolidate other debts into their home loan
• Buy an investment property, vehicle, boat or other item
• Make property improvements or upgrade to a new property
• Pay for further education or children’s school fees
• Extend the loan term
Call the customer service centre on 13 MORTGAGE, visit www.mortgagechoice.com.au or www.facebook.com/MortgageChoice or http://twitter.com/MortgageChoice”
For further information or to arrange an interview, please contact:
Kristy Sheppard
Mortgage Choice
(02) 8907 0502 / 0407 450 860
kristy.sheppard@mortgagechoice.com.au
About Mortgage Choice
Mortgage Choice, Australia’s largest independently-owned mortgage broker, has a national network of hundreds of franchises and loan consultants supported by Group and State Offices. It provides loan advice on, and choice of, products offered by an extensive panel of Australia’s leading lending institutions.
A number of the company’s consultants provide a broader service offering, also helping customers source personal and commercial loans, asset finance and risk insurance.
Importantly, Mortgage Choice head office pays franchisees the same commission rate for home loans they write, regardless of the rate paid by the lender selected by a new customer – and has been doing so for most of its 17-year history. The company has no products of its own and works in each customer’s interests to source a loan that suits their individual needs.
Mortgage Choice has no balance sheet or funding risk, and consistently delivers strong profits and attractive yields. The company listed on the Australian Stock Exchange in August 2004 (ASX sign: MOC) and is a member of the Mortgage & Finance Association of Australia (MFAA).
Recent awards/recognition: 2009, 2008, 2006 and 2005 MFAA Awards Retail Aggregator/Originator of the Year; 2009 and 2008 BRW Fast Franchises list; No.1 spot on Top 25 Brokerages list by Mortgage Business magazine; 2009 Australian Banking & Finance Awards Best Financial Institution Employer; 2009 Great Place to Work® Institute Best Companies to Work For list; 2009 and 2008 10 Thousand Feet Top 10 Franchise list; 2008 MFAA Awards Best In Mortgage & Finance Industry.
Visit www.mortgagechoice.com.au or call the customer service centre on 13 MORTGAGE.
Sarah-Jane Stevenson
Consultant | Reputation Pty Ltd
Suite 2, Level 1, 30 Clarence Street Sydney, NSW 2000
Tel: +61 2 8252 7005
Fax: +61 2 9262 6782
Mob: + 61 433 936 998
www.reputation.net.au
{ 1 trackback }
Comments on this entry are closed.