Finding the time to delve into your finances can be a struggle. But a new year can offer the perfect opportunity to catch up – so get cracking on your financial to-do list by looking into refinancing your mortgage.
Planning on giving your finances a boost by refinancing your mortgage?
Well, you’re not alone. Following a string of rate rises last year, borrowers are refinancing in record numbers, according to PEXA research.
And ABS finance and wealth spokesperson, Katherine Keenan, says recent data shows owner-occupier refinancing with different lenders remained at record levels in 2022, above $12 billion.
For many, mortgage repayments take the biggest chunk of the household budget which has become increasingly stretched by the rising cost of living.
So, the start of the year could provide some spare time to give your mortgage a thorough look over.
We’ll fill you in on why it may be a good idea to refinance your mortgage, what to look out for, and how you can get a helping hand.
Why refinance?
If it’s been a while since you’ve revisited your mortgage, you could be paying a higher interest rate than you need to. This is commonly known as the loyalty tax.
Lenders like to offer all the bells, whistles, and better rates to new customers in a bid to get their business.
Since they’ve already won you over, you often don’t get invited to the party – but by refinancing, you could have lenders offering sweet new customer deals to woo you.
And if your fixed-rate mortgage good times are about to stop rolling, you too could get in on the new customer woo-fest and shop around for a better interest rate.
With the right offer, it can really pay off – refinancers saved on average $1,524 per year, according to 2022 PEXA data.
Over three years, that adds up to an extra $4,572 in your pocket for renovations, savings, extra repayments, or whatever you like.
And you don’t always need to move to another lender to see savings. You could refinance or negotiate with your existing lender, depending on their policy.
For those looking for some financial security, our 3 year fixed rate Premium Choice Home Loan* could be the perfect option to save money and achieve your home ownership dreams.
Ditch the hassle
If you’d like to find out more about refinancing, get in touch today – we know all the ins and outs of refinancing and can shop around to find the most suitable loans for you.
*Credit eligibility criteria, terms and conditions, fees and charges apply.
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