Here are five solid reasons why it should be high on your priority list
1. You can (most likely).
You might not even be aware you could do it. But since many home loans are refinanced with the intention to save money, the timing could be better than ever.
However any approval would be subject to a full assessment of your eligibility . So, for a lot of Australians facing job loss or reduced hours, now may not be the best time. But if you have seen minimal impact financially from COVID-19, it’s worth a look.
2. Lockdown the low rate.
In 1989-1990 home loan interest rates hit an all-time high at 17% p.a.
At the time of writing, the RBA interest rates are at the lowest they’ve been in 60 years, at just 0.1% p.a.
Cash back offers are quite prevalent but be careful of low-hanging fruit and take into account other factors like ongoing rate, reputation and even customer service.
There is no doubt that COVID-19 has delivered a serious financial blow to many homeowners, however, now could be the time to take advantage of the lowest rates in Australia’s recorded history and start saving.
3. Help with cash flow.
Perhaps you’d like to release some equity to have some cash for a minor renovation, to consolidate debt or to consider alternative forms of investment.
4. Make sure you’re on the right loan for you.
You could be on a variable loan and want to take advantage of the current low fixed rate.
You may want to access different features or flexibilities of a loan that you currently can’t, such as extra repayments without penalty. Or your bank or lender just isn’t servicing you the way you deserve
Whatever your reason, it may be time to make the move to a different home loan.
5. You’ve never refinanced – or haven’t in a long time.
Studies show 58% of Australians spend about the same time watching an episode of their favourite show as they do inspecting a property. And if Australia’s putting that little effort into finding their dream home, imagine how little they’re putting into choosing their loan. Refinancing could save you thousands of dollars!
The five reasons above are all worthy considerations, but the main one is just to make sure you’re not being taken for a ride. It quite literally pays to look around. Turns out all that time locked down at home might’ve been the perfect time to start saving on it!
Please be aware that you should always consider getting mortgage or financial advice first and be aware of the potential downsides. We would love to assist you on this journey.