View our range of Refinance videos curated by our expert team of Newcastle, Maitland & Hunter Valley loan specialists and finance brokers. Contact us to learn more.
4 Signs It May Be Time To Refinance
Now is the time to review your home loan. Here are four signs you may be overdue for a check-up.
You’ve been with the same lender forever
You have no idea what a redraw facility or offset account is
How they work
Your personal circumstances have changed
You’re drowning in debt payments
Please reach out – you have nothing to lose and everything to gain.
Getting Ready For A Loan
If you’re thinking about getting a home loan, there’s a couple of things you can do to get yourself started.
Open up a separate bank account to the rest of your accounts, this way the bank has a clear picture of how you’ve been saving for a home loan
Show genuine savings
Show good conduct on current accounts
Good payment history on current debts
Home Loan Features
Looking for greater flexibility with your finances? These two home loan features might be of interest to you.
Offset Account – An offset account is a transaction account linked to your home loan account. Money in your offset account helps reduce the interest you pay.
Redraw Facility – A redraw facility means you can put all your ‘rainy day’ money in your mortgage, knowing you can get it out again if you have to. A redraw facility allows you to make extra payments and then withdraw them if you need them.
Choosing The Right Loan For You
To find a loan that suits your needs and financial situation, it’s important to understand the differences between the loan products available.
Variable Rate – means your repayments go up and down as interest rates change
Fixed Rate – gives you the certainty of knowing what your repayments will be with an interest rate that stays the same for a set period
Interest Only – is a loan where you pay only the interest for some or all of the term, with the principle balance remaining unchanged during the interest only period.
Principle & Interest Loan – repayments on principle and interest loans are higher because you’re simultaneously paying interest and paying off the original loan balance.
Loan Types Explained
Choosing the right loan makes your money work harder for you. However, deciding which loan is right for you can be overwhelming and confusing, due to the wide variety of home loans available—all with different interest rates and features.
Basic home loan – excellent option if you’re looking for a simple loan
Standard variable rate loans – have more features than a basic home loan including the benefit of an offset account and/or redraw facilities
Introductory rate home loan – suitable if you’re looking to minimise your initial home loan repayments. Offers a reduced interest rate and lower repayments for a set time.
Fixed rate home loan – allows you to lock into an interest rate for a period which can be anywhere from 1 to 7 years
Split loan – offers you the option of having part of your loan fixed and part variable
Four Reasons To Choose A Mortgage Broker Over A Bank
Why choose a Mortgage Broker over a Bank?
Brokers assist you during the entire mortgage application process.
We protect your interests and help to reduce the incidence of declined loan applications.
Brokers are not aligned to any one particular bank.
Brokers are well practiced in finding the right loan products and most competitive rates. We know lenders’ credit policies and are able to direct you to lenders most suited to your circumstances.
What A Mortgage Broker Can Do
As your professional mortgage broker we’re here to make sure you know everything you need to know.
We help you determine your borrowing capacity so you know what property you can afford to buy.
We search for the most suitable finance product that meets your specific needs.
We then assist you with your loan application process.
As your mortgage broker, we’ll support you along your buying journey, from pre-approval, right up to settlement and beyond. We’ll be there to answer your questions and do the leg work for you, so you can enjoy the excitement of the home buying process—without the added stress.
What’s The Difference Between A Bank And A Mortgage Broker
Not sure what the difference is between a Bank & a Mortgage Broker?
A bank only has access to their own loan products and interest rates.
Mortgage brokers have access to a wide variety of lenders with competitive rates—including the “Big 4” Australian banks, second tier lenders, and credit unions.
With a mortgage broker you get personalised, ongoing service from someone you know and trust. We’re here to help you for the long term.
Tips For Repaying Your Mortgage Sooner
Tips on how you can pay off your home loan earlier and take the next steps to becoming a property investor.
Make extra repayments
Utilise a mortgage offset account
Make an annual lump sum payment
Opt for a redraw facility
Basic Products vs. Professional Packages
Basic Products vs. Professional Packages
Basic Product – Base Variable loan product, application fee, monthly service fee, no offset feature, redraw available usually at a fee
Professional Package – Variable, Fixed, Line of Credit & Split Loan products available, annual package fee, bank account with offset feature, redraw available usually fee free
How to Compare Home Loans and Features
How to compare home loans and features:
Principal and Interest
Variable Home Loan
Fixed Home Loan
Split Home Loan
When To Leave Your Lender
Here are some tell-tale signs that it may be time to part ways with your current lender and start afresh with someone new.
Your home loan is getting old
The honeymoon period is long gone
Your lender doesn’t listen to a word you say
Your needs are not being met
How do your living expenses affect your borrowing power
You may be surprised to discover that how much you spend on day-to-day living can considerably reduce the amount you are eligible to borrow, even if you are a high-income earner. So, if you’re planning to buy a home, it may be time to cut back on some of life’s little luxuries and set yourself a strict weekly budget. Here’s why.