Refinancing Home Loans

Refinancing allows you to change from your current home loan lender to a new home loan to suit your needs more appropriately. It is very important to review your home loan approximately every 12 months to ensure that you are still getting the best deal possible. New home loan products are constantly coming into the market, which means you could be paying a higher interest than you should. If you require further assistance, please do not hesitate to call First Choice, we are one of Australia’s best mortgage brokers, and we do everything possible to assist our clients!

Debt consolidation can simplify your finances and potentially save you money in the long run. By combining multiple high-interest debts into a single loan with a lower interest rate, you can reduce your interest payments and make it easier to manage your debt.

Another benefit of debt consolidation is that it can help you improve your credit score. Making timely payments on your consolidated loan can demonstrate responsible credit behavior and boost your credit score over time.

If you’re struggling with debt and considering debt consolidation, contact First Choice Mortgage Brokers today. Our team of experienced Mortgage Brokers can provide you with tailored advice on debt consolidation and help you find the right solution to manage your debts effectively.

• 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, is 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 new features such as a 100% offset account or redraw facility
• Access funds to finance a long-overdue holiday or investment opportunity

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?

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.

Also, you may or not be aware that savings interest earned on your accounts is taxable. If you put your savings in your home loan offset account instead, you will be reducing your home loan interest and reducing your tax bill at the same time.

All-in-One Product
An all-in-one product loan account 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 reduce 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. 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.

Professional Packages
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.

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

Redraw Facility
Redraw facilities allows you to draw on any additional home loan repayments you have made in addition to your interest 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 access the funds, which can vary from lender to lender.

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.

Repayment Holiday
Some products have a repayment holiday feature that allows you not to repay during the holiday period. If you plan to go on maternity leave or change your job, this option can be handy.

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.

Lenders Mortgage Insurance
Lenders Mortgage Insurance is a one-off fee paid to ensure any loan where you borrow more than 80% of the property value.

In the unfortunate case you fail to pay your loan, mortgage insurance protects the lender. You, the creditor, are not covered.

If you need mortgage protection, the mortgage consultant will tell you how much it pays. We may be able to arrange the loan so that you don’t have to pay for mortgage insurance at all.

Fixed-Rate Home Loans Vs. Variable Rate Home Loans
Fixed-Rate Home Loans have interest rates and loan repayments that are fixed for a set period of time. A variable rate home loan has an interest rate that fluctuates in accordance with changes in the RBA’s cash rate.