Benefits of Refinancing
If a lower interest rate, better service, reduced fees or more flexible options are features that interest you, then refinancing your mortgage may just be the solution for you.
In a nutshell, as lenders become more and more competitive, lenders reduce interest rates, increase flexibility in terms and add new features in order to attract and retain customers. Think of the gym and fitness market for example. Five years ago, it was impossible to sign up to a gym for less than a 12 month contract. Nowadays, with gyms on every corner, you can sign up month to month for half the price.
We all know that every dollar counts. So, how can you make this lender competition work to your advantage? Our experts discuss the top 3 benefits of refinancing:
1) Get a Better Interest Rate
There are many different types of promotions offered by different lenders throughout the year, and over the course of your mortgage. Our experienced brokers can also have access to special deals and promotions not available to the public due to the sheer volume, reliability and experience in loans written. It’s always a good idea to ask your mortgage broker about the current promotions on the market. Brokers receive updates from the lenders and stay up to date with the latest offers.
2) Release Equity
Whether it be for a second home, an investment property, a car, or your child’s education, refinancing your mortgage can be a great way to release equity. It is important in considering this option, that you have received advice that the value of your property will stack up. Talk to your expert mortgage advisor today to discuss.
3) Take Advantage of Incentives Offered
a) Rebates and Cashbacks
Another type of promotion can be in the form of a rebate. Although you shouldn’t refinance purely for a cash back, these rewards can be tempting and lenders offer them on a regular basis. The rebates will vary depending on whether you’re a first home buyer or an existing customer and their initiatives at the time.
b) Better Deals from your Lender
Remember it is far easier for a lender to retain an existing customer, than to acquire a new one. However, your mortgage broker is still highly likely to be able to get you a better deal based on their intel, experience and credibility in the industry, alongside their access to special deals not available to the general public.