Refinancing Home Loans with a Sunshine Coast mortgage broker

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It’s hard to make a decision when you don’t have all the facts. Work with us and we’ll figure out the best course of action for you:

Is refinancing a home loan now a good idea?

If your interest rate is at the higher end of currently available rates, if the break fees aren’t too high and you are ready to refinance, then asking your current lender is the first step before shopping for a new loan.

Currently, we are witnessing a historic rise of the cash rate: seven times already in 2022! As of October same year, the Reserve Bank of Australia (RBA) has lifted the cash rate once again to 2.85%, which marked the country’s longest consecutive run of increases. The hikes since May now totals 275 basis points, comparable to the 275 basis-point jump in borrowing rates between August and December 1994.

With this to consider, several refinance home loan rates from various lenders are looking attractive. As interest rates are forecasted to go even higher in the coming months, locking in to a new and lower interest rate now (true for variable rate and fixed rate customers) will save you tons in the near future.

The truth is, you can refinance at any time as long as your financial situation can accommodate it. However, there are signs to help you know when a good time is to shop around for home loan refinance offers:

Why refinance home loan?

For many homeowners, the idea of refinancing can seem like an unnecessary headache. It requires paperwork, interest rate comparisons and financial decision-making – basically, all the things you had to do when you initially signed up for your mortgage.

But in light of record-high interest rates and major shifts in the economy right now, refinancing should be seriously considered.

Benefits of refinancing home loan

Refinancing

Less interest = more savings

Refinancing allows you to switch to a lower interest rate and save hundreds to thousands of dollars on monthly repayments.

Refinancing

Financial freedom

When you refinance a home loan ,you can pay off your mortgage earlier and reassess and reset your repayment goals.

Refinancing

Get a better loan

Refinancing allows you to switch to a lower interest rate and save hundreds to thousands of dollars on monthly repayments.

Refinancing

Debt consolidation

Simplify your monthly repayments and save money by consolidating your debts into one account.

Refinancing

Cashback deals

When you refinance a home loan ,you can pay off your mortgage earlier and reassess and reset your repayment goals.

Refinancing

Get a better loan

Refinancing allows you to switch to a lower interest rate and save hundreds to thousands of dollars on monthly repayments.

Refinancing

Avoid paying loyalty tax

Loyal, long-serving customers help their lender fund the special deals offered to new clients via loyalty tax. You could be paying it already with your current loan. Refinance to cut costs!

Frequently Asked Questions on Home Loan Refinance

So what is home loan refinancing? It is the process of taking out a new mortgage, with a different bank or your current one, to repay an existing loan. Refinancing can be a smart way to manage your money because you may secure a better deal, consolidate debt or even unlock home equity in your current property.

Below is the general process of refinance home loan applications:

  • Understand the implications and essentials of mortgage refinance deals
  • Assess your current position (e.g., are you eligible for a new loan? are you still happy with your current lender or home loan?)
  • Shop around to find the best home loan refinance deal for you.
  • Apply for your new home loan with the help of a home loan broker Sunshine Coast
  • Transition from your old home loan to a new one!

When you got the best deal back then, you were likely given a price deal to win your business. Once you are on board, new customers continue to get better deals, but you may be left behind with your interest rates or fees creeping up over the life of your loan. This is commonly known as a “Loyalty Tax”.

A refinance cash back offer is an incentive that banks and lenders reward their new customers with for taking out one of their products. You may receive this in cash. They can also reward you by taking out fees you’d otherwise be charged or giving you gift cards for certain stores or brands.

The costs to refinance home loan in Australia vary depending on the lender, the amount of the loan, and the current interest rates. This may include, but are not limited to:

  • Discharge fees with your current lender
  • Early exit fees with your current lender
  • Application fees with the new lender
  • Settlement fees with the new lender
  • Valuation fees with the new lender
  • Government mortgage discharge fees
  • Lender’s Mortgage Insurance premium, if your equity is less than 20%

$28,000 over 10 years, which is equivalent to about $50 a month (based on a $500,000 loan).

If you want to know the figures that apply directly to you, your best option is to reach out to your mortgage broker today. At SCF Solutions, we can assess where you’re at and show you where you could be. We’re just a phone call away.

What our Clients Say

Sunshine Coast Financial Solutions - Mortgage Broker IconSunshine Coast Financial Solutions - Mortgage Broker

Shop 18/8 Fairfax Street, Sippy Downs

5.0 476 reviews

  • Avatar Janine G ★★★★★ a month ago
    Chris and all the team at Sunshine Coast financial solutions have been absolutely fantastic. I cannot fault their service, professionalism and assistance with all my financial needs when I was obtaining finance.. refinancing and buying land. I'm not savvy at all in the finance area so the staff were incredibly helpful and highly efficient at getting me all the information I needed and helped me to understand what I was doing. I highly recommend them to anyone who needs help in this area. Thanks to Shanina especially... You really know your stuff and I couldn't have done all of this without you.
  • Avatar Craig Jenkins ★★★★★ in the last week
    So much thanks to Chris and the team at SCFS. We had a very difficult and compressed settlement subject to many finance extensions. The whole way through the journey the whole team were absolutely professional and got us into our new home.
    I Very highly recommend there services to
    All.
    Your sincerely
    Craig Jenkins & Katherine Thompson
  • Avatar Nic Morris ★★★★★ 4 months ago
    Words can not express how grateful I am to have had SCF Solutions on my team. As a first home buyer I had very little experience to bring to the table. But I have felt unbelievably supported and in incredible safe hands. The entire team were amazing to deal with and organised. They found me a fantastic rate and they didn’t stop at the first decline from lender. I never felt forgotten about or silly for having no idea what happens next.
    I’m not much of a review writer, this is possible the 4th one I have ever written, but that’s because I mean it. I’m so grateful I was recommended your team in the first place… Chuffed as, Nic
  • Avatar Emily Hall ★★★★★ a month ago
    My partner and I recently worked with Daryl, Chris and the team at SFC solutions and I just have to rave about them! They made the whole mortgage process a breeze. From the moment I reached out, they were super responsive and attentive to all my questions. They really took the time to understand my financial situation and goals, which made me feel confident in their expertise. They guided me through each step, explaining everything in simple terms. I couldn't believe how smoothly everything went. Working with Daryl, Chris and the team took the stress of being first time buyers away. If you're in the market for a mortgage, I highly recommend giving them a call. They're the best!

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