Is It Time to Review Your Current ?
Loan
Does Your Current Loan Still Meet Your Needs?
Life is constantly changing—your income, expenses, and financial goals may look very different today than they did when you first took out your home loan. It’s crucial to periodically review your mortgage to ensure it still aligns with your needs and long-term financial plans. If you haven’t looked at your loan in the past 18 months, you might be paying a "loyalty tax" without even realising it.
Exploring refinancing options can help you determine if your current mortgage is still a good fit or if it’s time to switch. With thousands of loan products on the market and complex terms, navigating these options can be challenging. This is where a professional like us can step in and simplify the process for you.
This guide will walk you through the key factors to consider when refinancing your mortgage.
Why Should You Consider Refinancing?
As your life circumstances and the market change, the loan that once fit your needs may no longer be the best option. Whether you’re aiming to reduce monthly payments, consolidate debt, or access equity, refinancing can be a smart move. Here are some common reasons to consider refinancing:
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Saving Money with a Better Deal: The first question to ask is whether you could be paying less. A lower interest rate or reduced fees can significantly lower your monthly payments, giving you more flexibility or helping you pay off your loan faster.
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Accessing More Loan Features: It’s not all about the interest rate—loan features can make a big difference too. Some valuable features include:
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Offset Accounts: These accounts allow you to use your savings to offset the principal, reducing the interest you pay.
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Flexible Payments: Making extra payments can help you build equity faster and reduce your loan term.
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Redraw Facility: This feature lets you access any extra payments you’ve made if you need funds later on.
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Fixed or Variable Rates: Choose a fixed rate for stability or a variable rate if you believe interest rates may drop. We can help you weigh these options based on your financial goals.
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Refinancing for Home Renovations: If your home’s value has increased, you might be able to use the built-up equity to fund renovations. With a well-planned renovation, you could boost your home’s value while using smart loan structuring to minimise costs.
Why Work with Us?
The key to successful refinancing is understanding the market and your options. We specialise in comparing loan products, negotiating with lenders, and aligning these choices with your personal financial goals. Here’s what sets us apart:
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Market Expertise: We stay up-to-date with market trends and maintain strong relationships with a variety of lenders.
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Personalised Approach: We start by understanding your current financial situation and goals, allowing us to identify the best refinancing options tailored to your needs.
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Simplified Process: We handle the heavy lifting, from loan comparison to application submission, making the entire process seamless and stress-free for you.
Should You Go Directly to a Bank?
You could approach a bank directly, but that limits your options. With fewer than 30% of borrowers now choosing this route, it’s clear that many prefer the broader selection and personalised service that a broker offers. We have access to a wide range of lenders, from big banks to smaller credit unions, and can help you navigate their ever-changing products and policies.
What Has Changed in Your Life?
When considering refinancing, it’s important to take stock of any changes in your financial situation. Here are some factors to consider:
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Income Changes: Has your income increased or decreased?
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New Financial Obligations: Have you taken on new debts or credit cards?
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Life Events: Have there been any changes in your relationship status or family plans?
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Property Value: Has the value of your home increased since you took out your current loan?
These factors can all impact your borrowing potential and influence the type of loan that suits you best.
What Type of Mortgage Suits You Now?
Refinancing isn’t just about getting a lower interest rate; it’s about finding the right loan type and features that meet your current needs. We’ll help you compare the details of different products and select the best fit for your financial situation.
Understand the Costs of Refinancing
Switching loans can involve certain fees, so it’s important to understand these costs upfront. We will conduct a thorough analysis to ensure that the benefits of refinancing outweigh any expenses. Some common costs include:
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Discharge Fees: Charged by your current lender when you exit the loan.
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Break Costs: Applicable if you are on a fixed-rate loan and exit early.
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Application Fees: Often charged upon loan settlement.
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Valuation Fees: To assess the current value of your property.
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Settlement and Registration Fees: Government fees for transferring the mortgage.
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Lender’s Mortgage Insurance (LMI): If your new loan exceeds 80% of your property’s value, you may need to pay LMI again. This requires careful consideration.
We’ll provide clarity on these costs and help you make an informed decision about refinancing.
Ongoing Client Care
Our service doesn’t end once your refinance is complete. As part of our commitment to you, we offer an annual rate review program. We’ll regularly renegotiate your interest rate to ensure your loan remains competitive, saving you money in the long run.
By partnering with us, you can rest assured that your refinancing journey will be smooth, efficient, and tailored to your unique needs. Reach out today to see how we can help you achieve better financial outcomes.
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info@fortifinance.com.au
0419 550 734
Disclaimer
This website has been prepared with all due diligence and care, based on the best available information at the time of last update. Fortifi Finance holds no responsibility for any errors or omissions within. Any decisions made by other parties based on this information are solely the responsibility of those parties. Capstone Mortgage Solutions Pty Ltd ACN: 665 796 234 is an authorised credit representative 547296 of Australian Finance Group Ltd ACN 066 385 822 (AFG) Australian Credit Licence 389087.




