You Could Be Paying More Than You Have To!
First Choice Mortgage Brokers provide a quick, easy and obligation free service that allows you to compare your current home loan against the hundreds available from our panel of lenders. It is common for people to refinance as they can get a better interest rate, lower monthly repayments and change their loan to suit their lifestyle. Best of all, it won’t cost you anything to have one of our mortgage consultants compare loans for you so you can start saving money now.
What Is Refinancing?
Refinancing allows you change from your current home loan lender to a new home loan to suit your needs. It is very important to review your home loan approximately every 12 months to ensure that you are still getting the best deal possible. There are new home loan products that are constantly coming into the market which means you could be paying a higher interest then you should.
Do you have a personal loan, credit card debt or car loan? It’s possible to save a considerable amount in interest payments by consolidating these debts on your home loan. While this can be a good idea in many cases, you should consider a couple of things.
Are there any exit costs, which would cancel out any benefit derived by consolidating with your home loan?
You will also need to be careful not to end up paying more by spreading your repayments over a longer period of time.
A First Choice Mortgage Broker can help you to restructure your finances and discuss ways for you to obtain the savings and avoid the traps.
- Reduce your monthly commitments by getting a lower interest rate
- Consolidate your credit cards, personal loans or other debts and get a lower interest rate – non-secured debt in most cases in charged at a higher interest rate than your home loan
- Release some equity from your property to carry out refurbishments or renovations to your existing home
- Refinance your mortgage to access a new and improved home loan product that will in most cases give you a new features such as a 100% offset account or redraw facility
- Access funds to finance a long overdue holiday or investment opportunity
Loan Features To Consider
There are many different products and features to consider when choosing a home loan. Do you want a cheaper rate? Do you want the flexibility of making additional repayments with no penalty? Or would you like to use your savings to offset your interest repayments? Whatever your needs, First Choice Mortgage Brokers are here to assist you.
100% Offset Home Loan
A 100% offset home loan is a home loan that comes with a linked bank account called an offset account. This offset account functions very similar to a normal savings account but with one main difference, any savings you have in the account reduces the amount of interest you pay on the linked home loan.
All In One Product
This is a loan account that combines your mortgage, savings and cheque account into one. You deposit your income into your mortgage account and the additional funds in your account then reduces your home loan balance and therefore the amount of interest you are charged per month.
You will often have a credit card attached to your “all in one” account which you will use for your daily expenses for example food, petrol and bills and the outstanding balance is drawn down at the end of the month from your home loan account before the interest free period on the credit card ends.
Usually professional packages are offered to clients with a higher loan amount as the interest rate discounts will only benefit those with higher borrowings. Packages can also include bonus income on savings accounts and free credit cards as part of the offer.
Typically the lenders require you to bundle all of your personal banking into the one package to offer you more savings. Most of these packages include “all in one” or offset account facilities as a standard feature.
Direct Salary Credit
Your employer pays your salary straight into your home loan account on your behalf – this can benefit you if you are not a good saver.
Allows you to draw on any additional home loan repayments you have made in addition to your loan repayments. You can access this money for any purpose you like and you don’t have to apply for new funds through your bank. Some products will charge you a redraw fee for accessing these funds which can vary from lender to lender.
Some products have a repayment holiday feature which allows you to not make a repayment during the holiday period. If you are planning to go on maternity leave or changing your job this option can be very useful.
Fixed Rate Switch
Allows you to switch from a variable interest rate which can change when the rates decrease or increase to a fixed interest rate which is locked in at a specific rate for a period of time.
Refinancing Tips & Tricks
You don’t have to be buying or selling your home to move your loan. There is no reason to wait until you sell your home or buy another property. If you are not satisfied with your current loan, why not start saving now? You can save thousands by switching to a more appropriate loan.
Savings made as a result of a lower interest rates and low or no monthly fees can be sizeable. When these savings are added to your repayments, they can cut years off your home loan and save you a considerable amount.
Save More By Consolidating Your Finances.
Consolidating your credit cards, personal loans and car loans with your home loan could save you a small fortune in interest payments, fees and charges.
You don’t need to shop around let First Choice Mortgage Brokers do the running around for you!
Here at First Choice Mortgage Brokers we use our expertise and experience in the home loan market coupled with a unique computer software program that enables us to compare hundreds of loans in a matter of minutes.
Our team of mortgage consultants will then be able to provide you with a short list of loans that are both competitive and suitable – simplifying the refinancing process for you.
Call First Choice Mortgage Brokers on 1800 111 455 to discuss your options in more detail