When it comes to the mortgage on your Mount Gambier home, it’s not unusual to just ‘set and forget’.
We find so many of our mortgage broking clients are more comfortable leaving their home loan to just tick along, without them changing anything about it.
However, we advise our clients that it makes sense to try and review your home loan every two to three years. Its surprising how circumstances can change; even if your own situation seems much the same, interest rates usually go up and down; there’s always new lenders on the market and products are always changing.
Not reviewing your home loan regularly means there’s a good chance that you’ll eventually spend more money than you need to – which is the best reason to make sure you see us to review your home loan every two to three years.
When you do see us to review your mortgage, we will undertake a full health check on your loan. Usually, this will be at no cost, and will deliver you the piece of mind that you’ll finish the review with the right loan, and a competitive rate.
The questions we will work to answer will include:
- Whether your interest rate is unreasonably high
- Are your fees higher than they need to be?
- What kind of service do you get from your lender? Are you satisfied with this, or would you like it to be better?
- Does your loan include the features that you really need… or are you paying for features that aren’t of any use to you?
- Have your financial circumstances changed since you last saw us?
It may be that we identify that you’re a good candidate for refinancing.
While you don’t need to take us up on this recommendation, some things to think about include:
WHY you should consider refinancing:
There’s typically four key reasons we will suggest refinancing.
- We identify that your loan is less competitive, and believe you could get a lower interest rate
- We believe there are other home loan features and benefits that would be of greater benefit to you
- Your financial situation has changed
- You want to access some of the equity you’ve built up in your property
WHEN you should consider refinancing:
The current conditions are perfect for refinancing; the low interest rate has produced many competitive home loan products – it’s a perfect time to be ‘shopping around’, so to speak.
WHO you should use to refinance:
The benefit of consulting a Mortgage Broker when considering refinancing your home loan is that we don’t have a loyalty or affiliation to one particular lender, or product. A bank will sell you the loans they have at the time; we will work with you to ‘shop the market’ to find an option that is right for your situation – that could be with your current lender, or we could introduce you to a lender you’ve never considered before.
You will have a wider array of options to consider. And rest assured we won’t bombard you, either. We will only suggest to you options and products that we now will be right for your circumstances.
WHAT is the refinance process?
How do we go about refinancing a loan? We’ve mapped it out simply below: We’ve explained the when, who and what of refinancing, but what’s the actual process involved? Here’s a simple
1. The review:
We will chat to you to make sure we understand where you are at financially, and what you want to get out of the refinancing process. This will include:
- Reviewing your current loan
- Comparing it with what else is out there
This will give us a clear picture of whether it’s the right time to finance your home loan and, if it is, what features to shop around for.
2. Selection & application:
Depending on what we find, it may be that you stay with your current lender, but just negotiate a better rate, or take up a different product, that will get you a better outcome.
You might also decide that its another lender who is offering the product that best-suits your circumstances.
We’ll help you work out the best option, then help you apply.
3. Valuation
A valuation of your property will be part of the application process. It’s worth knowing that the lenders’ valuation could be more conservative than what you think the market would pay. This is not unusual, and don’t be too concerned.
4. Approval
Approval will hopefully come within a few days of your application being submitted.
5. Closure of the old mortgage:
We will arrange for you to complete a ‘discharge authority’ form. Once this has been submitted to your current lender, they will provide a payout figure. What will happen is your new lender will fund your loan to pay out your current provider.
If you’re refinancing to consolidate other debts, for example, credit cards or personal loans, these will be finalised with the proceeds of your new loan at the same time.
6. The new beginning:
Your new home loan is in place, repayments will start.
Remember, that if you ever need help to manage your new loan, we are here to lend a hand.
The best reason to consider refinancing your home is that it could well save you serious money, particularly over the years of your loan. Get in touch today to find out just how much you could be saving.
