A word from Growth Point Capital CEO, David Schuh.
There’s been plenty of news coverage on the recent cash rate rise by the Reserve Bank of Australia (RBA) resulting in increased interest rates for mortgage holders. A number of the major banks have also predicted that the RBA will take rates up again at its next monetary policy meeting in July.
Despite this, I know from talking to my friends and family that many people are reluctant to refinance due to the hassle involved in switching banks and the concern they might end up worse off.
Since the last rate rise, our residential lenders have been working closely with their clients to refinance their loans to better products, sometimes with fixed interest rates and reduced fees and charges, saving them hundreds and often thousands of dollars a year. In one such case, our residential expert Andre, saved a client $11,000 a year in fees alone.
Another thing to consider is the opportunity to take advantage of the cash back offers and other incentives some banks are currently offering. Our brokers have a good knowledge of the various home loan products on the market and can help you weigh up the benefits of switching lenders in order to make the most of these offers while they’re in the market.
Something else that puts people off the thought of refinancing is having to get all your documents together. Rest assured that in many cases there’s actually minimal documentation required when you refinance a home loan. The other benefit is, we’ll liaise with the banks regularly on your behalf and report back to you on the status of the loan, saving you time (and an over-exposure to ‘on hold’ music).
If you’d like us to take a look at your home loan status, give us a call, there’s no pressure to change lenders if you decide not to but we’d be happy to investigate the options for you.
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How your loan might be affected by the interest rate rise:
- Home loan: $700,000
- Length: 25 years
- Current interest rate: 3.5%
- Rate increase: 0.5%
- Increase in monthly repayments: $190
Our content is prepared and reviewed by experienced financial experts. The information we provide is general in nature and does not take into account your personal objectives or needs. We recommend you consider whether it is appropriate to your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. All information pertaining to loans are subject to lenders terms and conditions and fees and charges and eligibility criteria apply.