Korff Wealth’s Top Tips for Reducing Mortgage Stress
With interest rates on the move, do you still have a competitive home loan rate?
Your current lender will not tell you if a competitor has a better rate!
As mortgage brokers, our job is to help you ensure that you are on the best interest rate and home loan that suits you. A rate reduction of just 0.5% could save you thousands of dollars each year.
It is also likely that your home has increased in value if you’ve held the property for a few years or have made improvements since you purchased it. As your loan reduces as a proportion of your property value (known as “Loan-to-Value Ratio” or “LVR”), lenders may offer better rates and other benefits. Therefore, you might have enough equity to refinance, fund renovations or consolidate some of your other debts onto a lower rate.
Refinancing and costs.
You should be careful to understand the overall loan cost and review the fine print when considering a refinance of your home loan.
While the offer might look good, they often only provide a short-term gain (via cashbacks, honey-moon rates or other incentives) and are a way for lenders to gain market share. The long-term cost is the interest rate you pay along with any ongoing loan fees. You should also consider the loan features that are important to you when deciding to change lenders. For instance, not all lenders offer multiple offset accounts.
Conditions will always apply when refinancing and being aware of your credit and repayment history is a must when considering any type of lending.
While the lowest rate offer may look attractive, they might not suit your lending needs.
We can provide a detailed comparison to enable you to make a fully informed choice that’s right for you. If you decide to proceed with a refinance, we help you with all the paperwork free of charge.
Fixed rate home loan
You might have a fixed rate home loan that is due to revert to a variable rate soon. You may have seen in the media that this will be happening to thousands of other Australian borrowers in the next few months.
For many who have been on a low fixed rate, the new variable rate may come as quite a shock with the level of interest rate increases over the last 12 months. For some lenders, the variable interest rate applied after a fixed rate expires can also be considerably higher than what the market is currently offering in comparison.
We can help you review all of your options, including canvassing the more than 40 lenders on our panel, to help you obtain the most cost-effective finance available. Our service is free of charge (we are paid by the lender who writes the loan) and we help you keep your loan cost-effective going forward.
So, don’t leave it until the last minute. Please call me today to discuss your options and begin the process.
Mark Nancarrow
Lending Manager
Korff Wealth Ballina
135 River Street Ballina
02 6686 6678
mark@korffwealth.com.au
www.korffwealth.com.au
Authorised representative of Vow Financial (ACL 390261)