Remember cassette tapes, dial-up internet and fax machines? All a thing of the past!
Sticking with your bank’s 30-year mortgage is much the same – a thing of the past. There’s no such thing as bank loyalty from customers or banks anymore (if there ever was). With the cost of living going through the roof and the interest rate rises it’s no surprise that there is a surge in mortgage refinances. After 10 successive RBA cash rate increases, from a record low of 0.1% in May last year, causing a surge in home loan interest rates, the industry is seeing a staggering – 2,370 every working day in Australia.
Homeowners have experienced the fastest tightening cycle in a generation, and many are ditching their current lender for a more competitive mortgage elsewhere.
Recent data from the Australian Banking Association (ABA) found 70 per cent of bank customers who refinanced their mortgage in the past six months did so with another lender.
If you are feeling the pressure and feel it’s time to review your options, you can shop around on your own and try to get the best deal or here’s a few reasons you should use a mortgage broker to refinance.
Experts
The current home loan market is extremely competitive and many lenders are fighting for your business. With banks and lenders offering a range of incentives to get you to switch.
Cashback offers of up to a staggering $5,000 (subject to a range of conditions). Rate discounts. Package deals. The whole shebang.
It can be a daunting task working out know which home loan is most suited for you.
That’s where having access to professionals can assist and make the process smoother. Our team are trained finance specialists. We have access to over 30 residential lenders and an understanding of which products best suit our clients’ needs.
We are also across all the latest industry developments, so you gain access to a wealth of knowledge by working with us.
Tailored solutions
There’s no one-size-fits all mortgage. Everyone’s financial situation and goals are different, which is why you need tailored finance solutions.
We will work with you to understand what’s important and ensure that any product recommendation fits your specific needs. If we think you could benefit from loan features like an offset account or redraw facility, we’ll explain why. But we must work in your best interests and won’t push any extras on you that you don’t actually need.
Options, options and even more options
You can go directly to your current lender and ask for a more competitive rate, you only get what they are able to offer i.e., their loan products and the rates they are prepared to put on the table.
We, on the other hand, have access to the full smorgasbord – a panel of lenders with different types of products, features and benefits. We will go through and make it easy to view your options and easily compare.
What about commissions? The commissions we receive are pretty similar across lenders. This ensures there’s no incentive for us to recommend one over another. We have an obligation to act in our clients’ best interests.
Take it easy
Trying to understand all the different home loan products out there can be stressful and overwhelming. With a mortgage broker, we can take the burden out of refinancing.
We can also liaise with your chosen lender and facilitate the whole process.
Fixed rate ending?
800,000 home loans will be reverting from fixed to variable in 2023. Do you fall into this category?
If you do, it’s worth speaking to us about your refinancing options. Your current lender’s variable rate may not be the most competitive or appropriate for your circumstances, so it’s important to get a second opinion.
Why refinance?
The main reasons to refinance we see are:
- Secure a more competitive interest rate
- Make the most of possible interest-saving features like offset accounts or redraw facilities
- Access equity for renovations, additional properties or other financial goals
- Consolidate debt
Get started
We understand the market. We understand mortgages. And we’ll take the time to understand your financial situation and goals. Don’t just take our word for it check out our latest client reviews.
Speak to us about how your home loan compares to others and we will explain if switching lenders could be financially worthwhile.
Get in touch today to start your review. We are available for face-to-face appointments, video or telephone. Whatever suits you.