When someone decides to refinance a home loan at Smartline Rockingham, there are one of two possible benefits: lower repayments or paying off the home faster at the same rate of payment. Both benefits are great, depending upon one’s individual financial situation.

The most recent numbers we have are from 2014, when 25% of Australians owned their homes, mortgage-free. In 2007, that number was 16%. However, 41% of Australians currently make repayments on a home loan, up 3% from 38% in 2007.

Deirdre Wroth is the Head of Banking Solutions and Wealth Management for Citibank, who conducted the 2014 survey. According to Ms Wroth, the Global Financial Crisis (GFC) has caused Australians to be much more careful with their money by curtailing their spending, choosing to either save money or pay down debt.

With lower interest rates, Ms Wroth has noticed that more and more Australians are using the extra money to pay down their mortgages.

What it Means to Those Refinancing a Home Loan

Our loan brokers at Smartline Rockingham have been busy refinancing home loans since the rates first started reaching record lows. We have noticed that most of our customers want to pay down their loans as soon as possible. Due to the “magic” of compound interest, even an extra $100 a month going towards the principal can knock five and a half years off of a 30 year home loan.

We know that everyone’s finances are different. We know some of you may be really struggling to make those monthly repayments and would rather have the option to pay less than you are paying now at your current interest rate.

Whatever the case, you can probably save money by refinancing your home loan now. Even if your rate is variable, you may be able to get more flexible terms and conditions, such as redraw capability or an offset account. Both of these can help you pay less interest.

To learn more about refinancing your home loan, call Smartline Rockingham today: (08) 9527 1800.