Save Thousands by Refinancing your Loan

Save thousands simply by refinancing your loan.

It’s often said that Australians are more likely to divorce their spouse than switch banks. But with plenty of competition in the home loan market, refinancing can be a great move.

There are a number of reasons why you might want to refinance: you can consolidate debt from high-interest credit cards into a home loan with a lower rate of interest; you can release cash from your home loan equity for renovations or other major purchases; or you might want to simply save on your repayments by moving to a loan with a lower interest rate and pay your home off sooner.

What’s my rate?

If you aren’t 100% sure exactly much you’re paying, how can you find a better deal?

Luckily, finding out your interest rate can be as simple as logging on to your bank’s online banking portal and checking the account information for your home loan.

What do I need?

Make a shopping list of the features you want in a new loan. These might include:

• Consolidate your debts:  refinancing can help you to consolidate debts such as personal loans, car loans or credit card debts to make significant savings which can used to pay off your home loan sooner.
• Unlock equity in your home: use the funds for renovations and improvements and increase the valuation of your home or use for investments to increase your wealth.
• Features: your current home loan may not provide the features that you would like in a loan,  e.g. 100% offset account for savings, option for split loans, internet banking, BPAY and direct salary crediting.
• Variable rate or fixed rate: a fixed rate gives you more certainty over the longer term; a variable rate can save you money when the market is down, but it fluctuates with the market.
• Repayment flexibility: repaying a loan fortnightly rather than monthly can save thousands. There are 26 fortnights in a year, but only 12 (not 13) calendar months, so you pay the principal off quicker (and therefore pay less interest) when you make fortnightly repayments.
• Ability to pay the loan out early with no penalty

What’s on offer?

Our home loan specialists will be able to help you choose the type of loan you want, how much you want to borrow and what extra features you need.

We’ll do all the legwork for you, providing you with solutions that cater to your particular financial needs.

Check out the costs of getting out – and getting in

If you took out your loan before 30 June 2011, the lender might be able to charge you an exit fee for terminating early.  And if you’re on a fixed rate mortgage, you might have to pay a break fee.

Some Lenders charge establishment fees and you may find yourself paying package or annual fees.  Some lenders also charge a fee each time you redraw on your loan.

Our Credit Advisers will  do the numbers and they’ll be able to advise you of any and all fees that are involved.

Do the maths

Use an online repayment calculator to work out what the repayments will be for different loan amounts at different interest rates.

Compare the fees and charges, too – these can add up, and may offset any interest rate savings over the life of the loan.

The Australian Security and Investment Commission’s MoneySmart website has a useful mortgage switching calculator that can help you assess the cost of switching your mortgage.

Speaking to MortgageDirect gives you a clear advantage

We have the experience and industry knowledge and will advise the best solution for you,  now and for the future.   Just call us on 1300 360 999