Discover other options if refinancing isn’t quite right for you
If you’ve worked out that refinancing isn’t going to save you in the long run, you’re not stuck with the current terms of your loan until you pay it off. There are other refinancing alternatives that can help you save money and reach your property goals sooner.
With many lenders saving their lower rates for new customers, it can be frustrating when you see your bank or lender offering a lower rate than the one you have.
What can you do? Ask them for a lower rate. But how?
A simple way to ask for a lower rate is by getting your Aussie Broker to do it for you. Your broker knows what rates the banks are currently offering. They also understand the current market and have the relationships to negotiate on your behalf.
You might consider a mortgage top up when you want to fund something such as a renovation or a car, but don’t want to take out another loan.
A mortgage top up is when you access the equity available in your home, to increase your home loan.
On the plus side, a mortgage top up may be more cost-effective than taking out a personal loan or accessing a credit card. This is because home loans generally have lower interest rates. However, you need to be aware of the impact a top up may have on your lifestyle, as your repayments might increase and it could take you longer to pay off your loan.
If you’re happy with your home loan and lender, but you want to change your repayment type, loan type or repayment amount and frequency, this may be something you can do without refinancing.
For example, you may be able to switch from principal and interest repayments to interest only, move from a variable rate to a fixed interest rate, or change your repayments from monthly to fortnightly. Speak to your Aussie Broker to find out how.
Your Aussie Broker is the right person to speak to when it comes to home loans. They’ll take the time to understand your goals and present you options that are right for your situation.