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5 Ways Refinancing Your Home Loan Can Help You

Wednesday, November 24, 2021

As we get closer to the end of another year, it’s a great time to reflect on how we each did financially over the last year, and what we can do to ensure that we set ourselves up for a great 2022. For those of us with home loans, the interest we are paying on our mortgages is likely the biggest financial commitment we have. Ensuring your interest rate is competitive, and the loan features meet your needs, will give you peace of mind as we head into the new year. Here are the top 5 reasons asking an Acceptance Finance broker to assist you with refinancing your home loan can help you:

1. You can reduce your interest rate and home loan repayments

If you’ve had your existing home loan for more than a couple of years you might be surprised to learn that your bank hasn’t automatically passed down the best interest rate available to you. If we are able to reduce your interest rate you can reduce your monthly repayment considerably. Or, you may decide to keep your repayment at the previous higher level, but because your interest rate has dropped, more of your repayment will go towards paying off the loan balance. This means you can pay off your loan quicker, which could save you years of repayments.  If you get in touch with one of our brokers, they can work with your existing lender to see if they are willing to reduce your rate. Your Acceptance finance mortgage broker will then show how your current lender’s offer compares to other lenders which fit your requirements. After you’ve made your selection, we work with you throughout the whole process. 

2. Considering a fixed rate loan 

As 2022 approaches, we may be coming to the end of the historically low interest rate period we’ve been in. Depending on the economic forces in Australia and abroad, we could see variable interest rates increase, which would mean loan repayments for those borrowers with variable rate loans increase. If you’re concerned that rising interest rates would affect your personal situation significantly, and the reduced functionality of a fixed rate loan product will still meet your needs, a fixed rate loan may be the way to go.

 One of our brokers would be a happy to walk you through the pro’s and con’s of the fixed rate loans available to you. 

 

two story house

3. Finding a more suitable loan product. 

If it’s been a few years since you organised your current home loan, its features may not be giving you the flexibility and functionality that you now need. If you have more savings now and an offset account makes sense, or if you would like a credit card added, an Acceptance Finance broker can review your current situation in full and recommend a number of products that should meet your needs. As an added bonus, some banks are providing refinance cash back’s of up to $4,000 (conditions apply) which can make the refinance process very worthwhile. 

4. You can consolidate your debt 

If you’ve built up some credit card debt, a person loan, or even buy now pay later debt, consolidating it into your home loan can simplify your finances and can reduce the amount of interest you are paying in the long term… if you are disciplined! We always try to educate our client on the pro’s and con’s of debt consolidation, as we don’t want our clients to enter a cycle of building up debt and consolidating it. 

Instead, we would always ask clients to consider their spending habits when consolidating debt, and if possible, maintain the total repayment amount they were making on the combined debts and pay off their home loan, thereby reducing their balance quicker. Get in touch with one of our brokers today to see if consolidating your debts is in your best interests. 

 

5. You want to renovate your home or get cash out 

If you are thinking of increasing your loan to fund some renovations to your home, or maybe to purchase a car or a caravan, it’s going to be a great opportunity for you to review your home loan product at the same time. When asking for an increase, most lenders will require you to provide your full supporting documents (evidence of income, living expenses, liabilities etc.), the same as if you approached a new lender, so the paperwork involved won’t be too different. So, make the most of your efforts in preparing your paperwork and ask one of our brokers to review options with our extensive panel of lenders, to refinance your current loan and provide the extra funds you need. 

 

Thinking it’s time? you can use the below options to get in contact with Acceptance Finance.

Phone us here 1300 931 155
Email us here
Visit our office – Google Maps Link
3a, 379 Whitehorse Road
Balwyn – Google Maps Link
Lastly, you can begin the application process here