Refinancing is something every person with a current loan should be aware of and planning to do at some stage.
In short refinancing is about options, building wealth and keeping the banks honest.
There is always a better deal out there, it’s the nature of the market and as a consumer it is something that needs to be taken advantage off. Home loans can be refinanced as well as investment property loans, personal loans, car loans etc.
Refinancing is usually associated with a home or investment loan and there is good reason for it. By refinancing a mortgage, you can get a better rate, consolidate some personal debt, unlock funds for home improvements or even purchase a second property.
Refinance to save on interest…..99% of the time
By refinancing every 2-4 years you can ensure you are always ahead of the market by having the best rate available. This will also allow you to assess whether you can save money by consolidating any further debt and most importantly build wealth and a property portfolio.
Our average refinance saves a person around $4,000 on interest per year, the fees associated with it are added to your loan and usually around $600. In some cases, banks will even provide $1,000 - $2,000 on settlement when you refinance to win your business. This means you could save big time and take advantage of a cash back offer as well.
It doesn’t make sense to refinance every year or so, this could also have a negative impact on your credit score. That’s why a refinance strategy with an expert is your best bet.
At Refinancer we start long term relationships in which we aim to put our clients in better positions, it’s a system in which we benefit, and our clients benefit. We call this keeping the banks honest, if banks always awarded the markets best rates to their customers there would be no reason to refinance. Unfortunately, with banks offering better rates to new customers than their loyal ones, Refinancing has become an absolute necessity.
Refinance as an investment strategy
Do you ever wonder how people are purchasing a second, third or even fourth investment property? The answer is they are refinancing (and they are purchasing well!)
The idea is for your property to grow every year and your loan to go down. After a little while you will create equity in your home. By refinancing you can not only move to the market’s lowest rate, you can also use that equity as a deposit to purchase another home. This strategy can build wealth exponentially if repeated over the course of a few years. The Australian property market always wins over the medium to long term and it has proven to be the most risk-free investment around.
At Refinancer we can put our clients on a path to achieve this goal, we will adjust your loan term and ensure your structure and product matches your strategy. We even mark the dates and organize for you behind the scenes to ensure that you do not have to worry or stress.
Think of us as a personal trainer for your mortgage!
Refinancing to clean up your loans
You can unlock equity in your property for home improvements, cars, travel etc. It is by far the best way to get funds and you can get this all at home loan rates.
If you already have credit cards, car loans and personal loans, they can be refinanced into your mortgage and the savings of getting this done can often be over $10,000 for a client with a few facilities. It’s important to have good conduct and repayment history as this will be a factor in a lender allowing the consolidation into your mortgage.
Refinancer specializes in the complex and extraordinary so feel free to get in touch as quickly as possible to start a debt clean up plan. We love nothing more than knowing our clients are on the best deal’s available to them!
Every Australian should have a Refinance expert on their side to ensure their loan outcome is always aligned to their financial goals! Start your refinance now
Buying a house is the Australian dream and so it should be! Why get caught in the rent trap?
Property grows in value, it enables stability and it is something that you own, initially, with the help of a bank.
There’s lots to consider when purchasing property, either as a home to live in or an investment. It makes sense to speak to an expert to ensure you are equipped and have considered the market and all necessary variables.
Finance comes first
The first thing you should know is finance comes first! (we take this super serious)
Seriously, we could not emphasize this enough, would you go to the shops without your wallet? This is the same as not having your finance sorted before looking for property.
Looking at property can be impulsive and sometimes an opportunity can come up that you need to act quickly on, it only takes a week or so to get pre-approved and this will give you the confidence to enter the market with cause.
Home loans are trickier than they used to be, so despite what you may hear from others, you should always see your broker first for pre-approval to ensure the most important part of the process is taken care of!
What should I buy?
Buying a property really depends on what you are looking to do? Do you want to live in or invest? Do you prioritize lifestyle over size? An apartment or a house and land?
There’s lots of options out there, it really comes down to what your goals are.
Our experts can help you understand whether an established home, a new home, an apartment, a house and land or even building is best. We will always see things from an investment point of view and consumer can be likely to look at things from a living and lifestyle front, it can be a fantastic mix when looking to purchase.
Besides obtaining a home loan there are other costs involved in the process. Stamp duty is payable, and the amount is dependent on a few factors, its best to run through a calculator to understand the amount of stamp duty payable
Lenders Mortgage Insurance or LMI can also be a cost involved. In short it is a risk premium that the bank will charge to protect themselves when it comes to smaller deposits. In most cases if your deposit is under 20% you will have to pay LMI. LMI can be added to your loan, so it’s not something that you will have to pay out of your packet. LMI also rises based on your deposit size, the smaller the deposit the higher the LMI, once again it’s best to run it through a calculator to get a good understanding.
Banks can charge an application fee when entering a loan, this is a once off payment that gets added to your loan. An annual fee is also a standard charge, it is essential to speak to one of our experts to ensure you know exactly what costs you may incur. We look at the full picture and disclose everything to you. Have full confidence that you will know every fee involved in your home loan purchase.
A comparison rate is a rate that factors in all the fees the lender may charge, it still isn’t the best way of knowing what the best product can be as it assumes you will not refinance and be in that loan for the entire life. Lender’s are required to disclose this, and it has become a bit of an urban myth that it’s the best form of comparison. This is why you need an expert on your side as opposed to looking through thousands of products with little industry understanding
Borrowing power or serviceability is one of the most important factors in banking. It simply takes into consideration your current position and gives you an amount the lender will responsibly lend to you. Each lender has slightly different borrowing power and this creates the need for proper analysis by an expert.
How much can I borrow?
One of the first questions you’ll want answered when buying a home, is how much can I borrow from the bank? Your borrowing power is calculated on your ability to pay back your loan. Lenders will look at your income, living expenses and any debt you may have Your credit score and whether you have any dependents are also factored in. Then they can calculate an amount that is suitable for you to pay back.
Keep in mind though it is always best to speak to an expert to hone in on the exact figure. One of our experts can let you know your borrowing capacity to the dollar!
How much should I borrow?
While first home buyers are usually focused on how much they can borrow, it’s equally important to consider how much you should borrow – or how much you can comfortably afford to repay on a mortgage each month. Consider the added costs that come with buying a house, such as stamp duty, council and water rates – not to mention any maintenance and repairs that may need to be carried out – and then factor in a bit more to act as a buffer in the case of rate rises.
Refinancer’s team of qualified advisors can help answer any questions you may have about your borrowing capacity, your loan to value ratio, and loan and repayments, to help you choose a loan size that suits you.
What can I do to borrow more?
At Refinancer we help our clients into strategies and plans that will allow them into better situations for borrowing, both in the eyes of the lender and for themselves.
An increase in salary or a second job will of course increase this, but by ensuring your current liabilities are at the lowest repayments possible, this has a quite significant effect on a lender allowing a higher lend.
The best time to buy property was yesterday and it likely always will be. Property is a great way to build wealth with limited risk and steady growth. There are several advantages that come with it and it can make all the difference utilizing a finance expert to ensure you have a finance strategy that matches your goals and ultimately delivers the best outcome.
House prices have grown nearly 50% over the past 10 years nationally and this is a trend that has always been apparent in Australia. There is a reason why the generations before us have always insisted on property and will continue to, it’s because investing in property is the safest form of investment that is readily available.
I don’t have a deposit, I just have a home loan?
The equity in your home can form the deposit for your investment purchase. This means you can continue to build equity in property and purchase when enough is available. An excellent strategy is to buy smart and pay off a home loan in double the time. This will quickly unlock equity to further invest.
What does refinancing have to do with an investment property?
Refinancing is the smartest and quickest way to make this happen, by having annual meetings with your home loan expert you can plan a way to not only get the best rate on your current home loan but plot a path to an investment property. Playing the home loan game can make it possible for everyday Australian’s to purchase investment properties and continue to do so.
Tax incentives for investment properties
Property investors can claim a number of expenses on their property, according to the ATO, including:
Management and maintenance costs, such as:
Interest expenses, which includes the interest charged on the loan you used to:
It all starts with a plan
Property investment doesn’t just happen, it requires a strategy and a level of execution. Everything starts with ensuring finance is ready and this can be done by assessing borrowing power, equity feasibility and finding a property type that fits best for the plan.
Come to us first!
At Refinancer we are renowned for finding the most suited personal loan for our clients. We have access to over 15 lenders in this space and this gives us the ammunition to always find a result.
As a personal loan broker, we have a very effective yet sophisticated process to ensure success for our clients. No one does personal loans better than us and we will work with you for as long as possible to ensure you get into a personal loan that matches your wants and needs.
It’s likely if you go direct to a lender you may get declined or be unsure as to whether the deal available is competitive. We do the research when others don’t.
After taking the time to get to know your specific scenario we will request appropriate documents and request access to your credit file. This is when the complexity kicks in.
We will cross reference several factors on your credit file which include your comprehensive score, Veda score, past enquiries, open accounts and then work out which lender will suit best given your circumstance. There is no other Australian business that puts this level of work and research into finding the perfect personal loan, this means we have higher approvals and can be certain our clients get put into facilities that best match their goals.
Lower repayments and higher approvals
Personal loans deserve the same amount of care that a home loan application gets, we lead the market in enforcing this. It’s worrying how little Australians know about there credit file and concerning we are not taught this growing up. We want to educate and provide as much insight into this as possible to ensure more Australians are aware of their position and get the best deal available to them.
Sometimes we can’t put you in a personal loan now, but we will make it happen in time
Often scenarios come our way featuring clients that have extremely poor credit files with countless enquiries and defaults. We feel for them because they have not been told of the ramifications of credit seeking. We will put our clients on a plan with specific instructions on what they can do to increase their credit score and give them a timeframe of when we can help them get into a loan. Although it may not happen at the time, we do everything in our power to put our clients in a position that it can.
No payday lenders, only lenders that have great rates
We do not believe in payday lenders and never will, we only provide our clients with personal loans from lenders with competitive rates and repayments. We will always look to step up our clients to better deals and will not hesitate to switch them over to a better deal if they are eligible. We want our clients to come to us first and this leads to great credit outcomes
Australians have personal loans, credit cards, car loans and other loans whilst never really looking for a better deal. The reality is that by consolidating and combined personal debt, they can unlock lower repayments with simpler terms.
There’s always a better option out there
We have access to dozens of lenders, and they love to consolidate personal debt. Having so many facilities can lead to a level of confusion in which you simply accept your terms and don’t look further. Our goal is to ensure Australians are in the best loans available to them, we also understand this has to be easy as possible for them, because let’s be honest, researching loans and looking over debt is the last thing anyone wants to be doing!
Simpler, cleaner and better conduct
With more facilities comes more complexity. Missed payments, over limits you name it, these are all things that negatively impact a credit score and make it harder for you to get a better deal. Our research suggests that most people who fall in this category simply feel overwhelmed by having different facilities and don’t have the time to address each one. By consolidating everything into one facility you not only save, but you make your loan portfolio easy and this enables less risk. It is really a no brainer to have less of something you want to pay off!
A home loan makes it easier but so does a vehicle!
Its true lenders will always favour those with home loans, but by having a car you give yourself another angle in attracting a great rate. A lender may be able to take security of your car in exchange for consolidating more of your debt. It is a clever way to give the bank more confidence whilst ensuring you get a better deal.
Sometimes it can’t be done now, but we will get you there
We go above and beyond when it comes to research and we will analyses your position from a lenders point of view. By studying your scenario and cross referencing it with your documents and credit report, we will let you know if now the best time is not to strike. We will work with you over the course of a few months to ensure you are in the best position to get the deal you deserve. Holding off on credit enquires whilst ensuring good conduct on current facilities can be a way to reach your goals, we will make this our objective to walk you through each step and completely revamp your credit profile.
Refinancer was born for debt consolidation
We're debt consolidation specialists, we are Refinancer after all! Debt consolidation is complex and requires a level of skill and communication to a client that can be hard to come by. We have found a way to make it as simple as possible whilst still leading the market on options, service time and approval rates. Debt consolidation is a complex beast and you do not want to risk getting declined by going direct to a lender or to a mortgage broker who only specializes in home loans.