.svg "page-1 (5)")
.svg)
.svg)
.svg)
.svg)
CLOSE
.svg)
Welcome back everyone. In the sixth and final part of my blog series, I want to discuss something that affects all of our financial journeys: Superannuation. Perhaps you’re concerned about your retirement savings? Or maybe uncertain about how to make the most .....
Lending, Refinancing - 4 min read
Your home loan might have been perfect for you when you bought your house years ago, but is it still meeting your needs?
Over time, people may face changes in their financial situations, goals and priorities, and refinancing a home loan is one of the ways to help you get back on track.
This post is a simple guide to refinancing a home loan. You may be surprised to learn how easy the process is and how much difference it can make in your financial situation.
Refinancing has several possible benefits, depending on your financial circumstances. For instance, if you acquired your loan when interest rates were higher, refinancing may allow you to significantly lower your monthly payments as well as the total amount you pay in interest over the life of the loan.
Or perhaps you need to access some of the equity in your home to fund remodelling or to take advantage of a new investment. Refinancing can also help you to tap into your equity for a variety of purposes. Another reason to refinance is to consolidate debts in order to pay them off more quickly and easily.
Whatever your reason, you may be able to reach your long-term goals with a strategic refinance of your current home loan. Here’s the process:
Don’t jump into loan refinancing just because a friend told you it was a good idea; have a well-defined reason for refinancing. Talk with your wealth adviser about your current financial situation and how your home loan fits into your long-term plans.
For example, John Doe wanted to retire early, and he decided that paying off his mortgage early would help him to achieve that goal. Therefore, he refinanced his loan to a shorter term to take advantage of lower interest rates. Even though John’s monthly mortgage payment increased slightly, he was able to achieve his goal of paying off his mortgage quickly, and this critical step helped him to retire early.
Your own goals may be very different from John’s, and therefore, you may need a different kind of loan. Before you approach a broker about interest rates and terms, make sure you’re clear about your long-term goals.
Once you’ve defined your goals, it’s time to discuss your options with a broker. You will likely have many options to choose from, including points to be paid, the length of the loan, fixed or variable-rate options, and cash-out loans.
Refinancing a home loan doesn’t come for free, but the benefits may far outweigh the costs and you can speak to your broker about current lenders cashback offers.
Whether you want to use a fixed or a variable rate is one of the important decisions you’ll have to make early on in your refinance process. If you plan on staying in your home for a long time, it may be safer to get a fixed rate. If you want to access the lowest possible payments early on in the life of the loan, you may want to use a variable rate. Discuss these options with your adviser or broker.
Once your broker has found a loan that meets your needs, the lender will need to gather documentation about your home and finances. Ensure you always read documents provided to you carefully and consult your wealth adviser if you’re unsure about anything.
After the settlement of your new loan, you’ll enjoy the benefits of having your mortgage aligned with your current financial goals. For more information about refinancing a home loan or to discuss our professional lending services, get in touch with us at Altus Financial today.
Set your business on the right path with this simple guide.
Make sure you’re on the right track with this online checklist.
Lending - 7 min read
Lending - 6 min read
Lending - 7 min read
© 2022 Altus Financial, All rights reserved.
Altus Wealth Pty Limited ABN 55 649 956 212 is an Authorised Representative of Altus Financial Services Pty Ltd ABN 24 637 026 825 an Australian Financial Services Licensee (AFSL no. 520266). Altus Financial Services Pty Ltd is not responsible for the advice, products and services provided by Altus Accounting. Julie Azzi is a credit representative (CR No. 366834) of BLSSA Pty Ltd ABN 69 117 651 760 (Australian Credit Licence 391237).
.svg)
.svg "page-1 (4)")