Just because your mortgage has a 20-30 year term, it, doesn’t mean you have to stick with it until it is fully repaid. At any stage you have the option to refinance your home loan. This means you can reborrow the money owing from a new lender at a lower interest rate, saving you money on your monthly loan repayment and saving you interest over the life of your loan.
Is your current lender looking after you?
Depending on how long you have had your home loan will depend on how well your lender is looking after you. When you took the home loan originally, you chose that lender for a reason. In most cases the lender had a competitive interest rate that was built around a product that had the features you required to reach your goals.
Over time, unfortunately the lenders focus on new clients and they attract new clients with offers which are potentially lower than your home loan interest rate.
How can we get your interest rate down?
The first thing we can do is review your existing home loan and make sure the product and features are still working for you. The product you have will determine what you can do and how much will change as a result.
We can review the features that are important like additional repayments, redraw, offset and potentially set repayments for a period of time.
Lenders like more equity. Therefore, the more equity you have the lower interest rate you will receive.
We will review the value of the property that secured the home loan to makes sure the bank is using the correct value of the home.
Once we have spoken to your lender and negotiated on your behalf you should see a reduction of your interest rate.
Is my home loan competitive?
Now you know what your current interest rate is, you can review with other lenders and make sure that the home loan will be at a good interest rate over the next 24 – 36 months. Your Launch Finance broker will be able to help you review the cost comparison and the features in a home loan which will help in the long term.