With record low interest rates, mortgage brokers in Kwinana have been kept busy. Not only have the low interest rates succeeded in boosting the housing market but they have also provided an opportunity for many people who took out loans when interest rates were high to refinance their loans.
There are many reasons why people refinance their mortgages. Some have equity in their homes and want to pull a little of it out. Some want to take advantage of better terms and/or better interest rates and keep their balance the same but with lower repayments.
With interest rates and an all time low, many Australians have taken advantage of the current rates to get themselves out from under loans that were written when interest rates were at their highest. In times of low interest rates, it’s considered a “no-brainer” to at least talk to a mortgage broker about refinancing.
However, many Australians refinance, even when rates are high. The lending industry is competitive. In times of high interest, borrowers often shop around to find better terms and lower fees.
When to Refinance
We suggest getting a “mortgage health check-up” every year. A mortgage broker can look at the terms, interest and fees of your loan and compare it with what other lenders currently have available. Sometimes you will have the best loan already. Sometimes, you can save money by refinancing.
The mortgage broker will “run the numbers” for you. If the total amount of your loan including fees and interest can be decreased, the broker will recommend that you refinance.
Another great time to refinance is if you want to expand or renovate your home. Homeowners with equity can refinance for a larger amount than the balance and reinvest the extra money back into their home to increase its value and enhance their lifestyle.
If you are interested in refinancing or in a new home loan, call Smartline Rockingham: (08) 9527 1800.