Is your home loan right for you?
If you are serious about growing your property portfolio, your home loan should never be a set-and-forget arrangement.
Restructuring can be the solution to minimise the cost of your loans and open the door to a range of other borrowing solutions.
Your life never stands still, and neither should your mortgage. If change is afoot, it might be time to search for a more suitable home loan.
Why refinancing makes sense
If you haven’t reviewed your home loan lately, chances are you are missing out on financial opportunities.
Even a small reduction in the interest rate can quickly bring dividends – particularly when there is a lender willing to waive routine charges such as establishment and valuation fees or ongoing annual and monthly fees or even provide you with a cash-back incentive to move lenders.
Refinancing allows you to reduce your minimum repayments, pay off your home loan sooner and tap into equity so you can grow your portfolio.
Although interest rates and fees are important and do form part of your strategy, the two most important reasons why someone will change lenders are:
1. To achieve a higher valuation, allowing you access to more equity
2. Being able to maximise your borrowing capacity with a new lender.
Request Your Maximised Borrowing Snapshot
Your Loans Australia finance strategist will help you assess your existing loan to check for the following:
- Maximising valuation potential
- Review current income sources to determine what can be maximised
- Examine current expenses and reduce their impact on future borrowings
- Monthly and annual fee reductions
- An outdated, too-high interest rate
If your existing loan is not in great shape, it is costing you money! The good news is that there are ways you can get a better deal, simply by restructuring to a more cost-effective option.
We recommend you review your mortgage every 12 months so you can take advantage of lower interest rates, consolidate your debts and ensure your current loan is suitable to your current personal situation.
Unlocking equity for future investments
You may be able to refinance your property at its current, higher value. This will open up additional funds, which could be used as a deposit on an investment property or other investment.
Depending on how long you’ve owned your home or made additional repayments and how much it has increased in value over the years, there’s a good chance that you could have substantial equity and the potential to grow your wealth by investing in property.
How we help
If you’re serious about saving money on your mortgage, you need a Finance Strategist on your team.
As well as conducting a Maximised Borrowing Snapshot on your mortgage, Loans Australia will work with you on a strategy to leverage your home to build lasting wealth.