People are always asking me, how can they save money? So I’m gonna give you a little no brainer now – it is to refinance your home loan. Refinancing your home loan is relatively easy and can save you thousands of dollars over the course of the year as well as lowering your monthly repayment. That means more money in your pocket, less money in the bank’s pocket and in my opinion, that’s a win-win!
Sounds great, I hear you say, however you have no idea where to start! Let me give you a crash course on refinancing your home loan.
Can I really save that much money?
Yes, you really can. If you can secure a home loan with 0.50% better interest rate than your current home loan, on an average size home loan of $500,000, that is $2,500 every year, or over $200 a month! What if your home loan was bigger, say $1,000,000, then you could be saving $5,000 every year, or over $400 every month! Plus, if we could help you achieve an interest rate discount even better than 0.50%, your savings would be bigger!
Is it difficult?
No! Assuming that you have the equity available in your property and have the household income to support the home loan, it is relatively straightforward to refinance your home loan. A talented mortgage broker will ensure the entire refinance process is smooth and stress free. With a handful of support documents and a couple of signatures, you can be on your way to a better home loan in no time!
How long does it take?
From the day you first meet your mortgage broker, to the day you settle on your new home loan, typically it takes 4 to 6 weeks to get it done. However, if you are super efficient you could complete your refinance in under a month!
How much does it cost?
This is the beauty of it. Your mortgage broker is paid a commission by the banks when refinancing your home loan, and will not charge you a cent to get it done! There will likely be some exit and entry fees charged by the banks, and this is why you need a skilled mortgage broker to do the maths on your behalf to make sure it is worthwhile. Want to know a little secret? Sometimes your mortgage broker can negotiate a cash rebate from the new bank for you, potentially covering the costs of your refinance in full!
Any other benefits?
Plenty! Refinancing to secure a better rate on your home loan and save money is only the tip of the iceberg. You can access the equity in your home for renovations or to invest in another property, you can consolidate any car loans or credit cards you currently have, you can restructure your home loan to better suit your lifestyle, you can extend your loan term back out to 30 years to lower your monthly repayments and so much more!
So what’s the catch?
No catch. This is simple maths. With your mortgage broker doing a majority of the work, if you invest a couple hours of your time and energy today you can get your refinance knocked over in a month and reap the rewards for years to come!