Interest rates are at record lows, and more homeowners are refinancing their mortgages than ever. With this article we wanted to explain why, and why you should consider talking to your own mortgage broker to see whether refinancing is a great option for you.
You don’t believe me? ABS figures out this week prove we’re not imagining things.
Refinanced home loans reached an all-time high of $17.2 billion in July 2021, which is a 6% increase on June of this year. This is double the level refinanced from last year.
You don’t believe me? ABS figures out this week prove we’re not imagining things.
Refinanced home loans reached an all-time high of $17.2 billion in July 2021, which is a 6% increase on June of this year. This is double the level refinanced from last year.
So why are homeowners refinancing in record numbers? There are three main reasons for this:
- All time low RBA cash rate – With multiple rate cuts over the last few years, at the time of writing the RBA cash rate is at an all-tome low of 0.1% Money is cheap
- Competition amongst lenders – Lenders are looking to take advantage of lower interest rates and lock in more clients. Competition is fierce and many lenders are competing on price. With neo banks and other lenders coming into the market, this leads to more consumer choice. Many lenders are also offering cash back incentives to entice new customers to join them.
- People are looking to lock in low fixed rates – With many expecting the economy to bounce back post-COVID, many borrowers are looking to lock in fixed interest rates ahead of expected rises in interest rates.
With many households and businesses around the country doing it tough right now, one simple way to reduce your monthly mortgage repayments is by refinancing.
You could manage the refinancing process by yourself, or you could engage the services of an expert mortgage broker.
Fixer rate loans and cashback options may seem enticing, but they aren’t always the best option available to you. There are many factors to consider, and there may be conditions in the fine print you could miss.
Fixer rate loans and cashback options may seem enticing, but they aren’t always the best option available to you. There are many factors to consider, and there may be conditions in the fine print you could miss.
Plus, it’s just nice to have someone in your corner advocating for you sometimes.
We can help you go through the fine print, fees and limitations that you need to know about when comparing loan options. We can also help you determine whether a fixed, variable or split loan is better suited to your needs.
Sometimes the best option may be negotiating with your current lender. You don’t even necessarily need to change. The thing is, you do need to be prepared to leave if your current lender doesn’t give you a better rate. We can find you a lender that will give you a better deal if your current lender doesn’t play ball.
If it’s been a number of years since you looked at your loan, now may be the time to assess your current mortgage. Get in touch today and we can see if we can save you thousands of dollars in interest repayments on your mortgage.
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