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Need a Mortgage Broker to refinance your home loan?
Your Home Loan Consultant Mortgage Brokers, we offer a hassle-free and obligation-free refinancing service that enables you to compare your current home loan with the numerous options available from our extensive panel of lenders.
It is common for people to choose to refinance their home loan in order to secure a better interest rate, reduce their monthly repayments, and find a loan that aligns with their lifestyle. The best part is that this process comes at no cost to you to compare your home loan! Contact one of our mortgage broker consultants today to explore loan options and start saving money right away.
To discuss your refinancing opportunities and receive guidance on the refinancing application process, give Your Home Loan Consultant Mortgage Brokers a call. Our team of home loan brokers in Brisbane are dedicated to working alongside you to secure the most favourable deal and help you achieve your financial goals.
Why Refinance your Home Loan?
Refinancing a home loan can offer numerous financial benefits to homeowners. One of the primary advantages is the potential for significant cost savings. Overall, refinancing provides a valuable tool for homeowners to optimise their financial situation and achieve greater stability in their homeownership journey.
Lower Monthly Payments
By refinancing your home loan, you can secure a more favourable interest rate, potentially reducing your monthly mortgage payments and improving your financial stability
Reduced Interest Costs
Refinancing allows you to replace your current mortgage with a loan that offers better terms, leading to substantial savings on interest payments over the life of your loan.
Access to Home Equity
Refinancing can enable you to access the equity built up in your home, giving you the financial flexibility to fund home renovations, consolidate debt, or invest in other important ventures.
Why consider refinancing and consolidating debts
Your life never stands still, and neither should your mortgage.
Your home loan might have been right for you when you took out your mortgage, but as your life changes, so do your lending requirements and it might be time to search for a more suitable product.
You may be able to refinance and find a loan that’s more appropriate for your needs, with more suitable features and a competitive interest rate to match.
Are your finances stressing you out and causing you to...
Switching lenders for a better home loan deal.
Imagine if you could eliminate your financial stress and...
The good news is, it’s all possible — even if you’re overwhelmed by debt right now. Refinancing and consolidating your debts could improve your cash flow and financial security. Lets get in touch!
Refinancing & Debt Consolidation
With the cost of everything increasing, including mortgages and credit card interest rates, many Australians are experiencing debt anxiety.
When faced with overwhelming debt, finding a solution can be a daunting task. That’s why Your Home Loan Consultant is here to help.
Refinancing and debt consolidation are two common approaches that individuals may consider managing their finance burdens. While these strategies aim to alleviate debt-related stress, it’s important to understand the key differences between them to make an informed decision.
Refinancing: A fresh start on your loans
Refinancing is the process of replacing an existing loan with a new one that typically comes with different terms, interest rates and repayment periods. By refinancing a mortgage, borrowers seek to take advantage of more favourable terms or interest rates to reduce their monthly payments, lower interest costs or change the loan structure to better suit their financial goals.
When we help our clients to refinance their mortgage(s) we research and source a range of finance options from different lenders or sometimes the same lender who issued their original mortgage(s) with the goal of achieving more favourable conditions.
The new loan is used to repay the balance of the existing loan, effectively closing the previous loan. Depending on the borrower’s goal and circumstances, refinancing may not be just about reducing the overall debt burden, it may also be focused on restructuring the terms of the loan.
Debt Consolidation: Streamlining multiple debts
Debt consolidation involves combining multiple debts into a single loan. It is commonly used to manage credit card debt or other unsecured loans. The goal is to streamline debt repayment and secure more favourable terms such as a lower interest rate or a longer repayment period.
With debt consolidation, as your finance specialist, we find a lender who will cover the outstanding balances of your various debts. Once approved, the new loan is used to pay off the individual debts leaving you with only one loan to manage. The new lender may request you to cancel your existing credit cards or reduce the limit to remove the potential of accumulating debt repeating itself.
Benefits of refinancing
Lower interest rates.
Refinancing may provide an opportunity to secure a loan with a lower interest rate, especially if your creditworthiness has improved since the initial loan. This may result in some substantial interest savings over the life of the loan assuming you maintain the same loan term or continue to make the same loan repayment amount.
Reduced monthly payments
By extending the loan term or obtaining a lower interest rate, you can lower your monthly payments, providing immediate relief to your cash flow.
Improved loan terms
Refinancing allows you to modify loan terms to suit your current financial situation. This may include switching from a variable rate mortgage to a fixed rate mortgage or changing from a short term loan to a longer term loan.
Benefits of debt consolidation
Streamlined repayment
By consolidating multiple debts into a single payment, you can streamline your monthly financial obligations into one payment. This can make budgeting more manageable and reduce the chances of missing payments.
Potential interest savings
The goal of debt consolidation is to achieve a combined lower interest rate compared to your individual debts, saving you money on higher interest payments over time.
Repay debt sooner
If you continue to pay the same combined payment amount to your new loan, you will likely notice that your debt can be fully repaid in a shorter amount of time.
Key differences between refinancing and debt consolidation
While both refinancing and debt consolidation involve obtaining a new loan to manage existing debts, there are key differences to consider:
Scope of debt
Refinancing typically focuses on a single loan, such as a mortgage or personal loan, while debt consolidation encompasses multiple debts and often unsecured debts like credit cards or personal loans.
Restructuring vs consolidation
Refinancing aims to restructure the terms of an existing loan, whereas debt consolidation combines multiple debts into one loan or payment plan.
Interest considerations
Potential drawbacks and considerations
Extended repayment period
Both refinancing and debt consolidation may extend the repayment period compared to the original loans. While this can lead to lower monthly payments, it can also result in paying more interest over the long term. You should consider the impact of an extended repayment period on your overall financial goals and the total cost of the loan.
Risk of accumulating new debt
When consolidating multiple debts, there is a risk that you may continue to accumulate new debt while repaying the consolidated loan. This can result in a higher overall debt burden and financial strain. It is essential to address the root causes of debt and adopt responsible spending habits to avoid falling into a cycle of debt accumulation.
Impact on credit score
Both refinancing and debt consolidation can have an impact on your credit score. When refinancing, the credit inquiry and closing of the previous loan may cause a temporary dip in your credit score. Similarly, debt consolidation may also initially impact your credit score. However, if you successfully manage the consolidated loan and make timely payments, it can have a positive impact on your credit score over time.
Scan or click on the QR code to schedule a suitable time to discuss your refinancing opportunities and receive guidance on the refinancing application process.
We offer a hassle-free and obligation-free refinancing service that enables you to compare your current home loan with the numerous options available from our extensive panel of lenders.
Lets Get In Touch!
5 reason to refinancing and consolidating your debts?
Pay off your mortgage faster!
If you’re striving to be mortgage-free, there’s a good chance there may be a more appropriate home loan product to meet your needs.
Some mortgage products are designed to motivate borrowers to repay their mortgages quickly.
So now is the perfect time to talk to your mortgage broker and consider whether a new home loan will see you on the road to financial freedom – fast!
Consolidate your debts
When refinancing your home loan, this is an opportune time consolidate your other debts, such as credit cards or personal loans, into your home loan. This could save you thousands of dollars in interest charges. Rolling your debts into one monthly or fortnightly repayment can also help make juggling your finances a little easier while improving your cash flow.
Better interest rates and lower repayments
Interest rates and mortgage deals are constantly on the move. To make the most of a competitive mortgage market, you might want to evaluate the loan product you currently have.
For example, you may want a lower variable-rate or lock into a fixed-rate.
Before refinancing your home loan, you should approach you current lender to see it they offer you a better home loan deal first.
Avoid monthly fees and charges
Some lenders charge a monthly account keeping fee – further adding to your debt. Competition between lenders has increased and some now waive administration fees, so re-financing your home loan with another lender can be a smart move to help cut your mortgage costs.
Unlocking equity
Another benefit of re-financing your home loan is it gives you an opportunity to restructure you home loan for future purposes and to access your equity.
As you pay off your mortgage you’ll accumulate equity in your home. You can then use your equity for other purposes such as purchasing an investment property or debt consolidation .
As long as you are capable of meeting your home loan repayments, refinancing your mortgage can help you tap into the equity that you’ve built up.
Getting started
Frequently asked questions
Refinancing is when you change your current home loan to a new home loan that satisfies your current financial situation. Refinancing can be done as a internal refinance (stay with the same lender) or externally (refinance your home loan to a new lender).
The most common reason to consider refinancing your home loan is to obtain a better interest rate. However, make sure you account for all the fees involved to refinance. Depending on your reason to refinance you need to see if you are saving a enough on interest and fees to make the process a viable option. If your LVR (loan-to value-ratio) is over 80% then you could also be required pay Lenders Mortgage Insurance.
The costs to refinance could include:
- Discharge fee from the existing lender
- Lender establishment fees
- Mortgage Registration fee
- Mortgage registration fee
- Fixed rate break costs if you are breaking a fixed rate home loan
- Lenders mortgage Insurance of the loan is above 80% LVR
Give us a call 0401 388 153 and will review your situation to see if refinancing to the right option for you.
The benefit of consolidating other debts into your home loan are you could have lower monthly repayment and also save on interest costs. However, you need to be mindful that you are paying these debts over a longer time (up to 30 years). Even though your scheduled loan repayment may be lower, the secret is keep paying the higher loan repayment and pay off your home loan years earlier.
Like to know more? Schedule a suitable time to chat about how refinancing could help you CLICK HERE
You could request a shorter loan term, rather than starting a new 30 year loan term. Depending your personality regarding credit, if are tempted to just make the lenders minimum repayment and not be disciplined enough to keep paying the higher repayment, then selecting a shorter long term might be the best option for you.
Reasons for wanting to refinance your home loan can vary for everyone, depending on your personal situation.
Some of benefits refinancing could be to:
Three questions to ask before you refinance?
Before you make the decision to refinance your home loan, there are a number of areas to consider. Here we cover off some questions you should ask before making the switch.
Will I be better off in the long run?
Refinancing your home loan to a lower interest rate can be a great way to lower monthly mortgage payments, freeing up some of your income for spending in other areas.
However, opting for lower repayments will usually mean signing up for a longer loan period and the longer you take to repay your home loan, the higher the accumulated interest payments will be.
Before refinancing, do some calculations to see how the new loan will stack up in the long run.
If you find your total interest payments are higher under the new loan term, you might want to consider adjusting the amount you pay each month (if the mortgage terms allow) to help you to become mortgage-free sooner.
What are the costs of switching lenders?
Switching to a new lender can come with a number of associated costs, so it is important to ask your mortgage broker about these before making any changes.
Some of the costs you need to be aware of include:
Bank fees. When you close your home loan account, you may be hit with a discharge fee (typically $100-$400) or break fees if you are ending a fixed rate loan before the end of the fixed term. Your new lender may charge fees for processing your new application, valuing your property and settlement.
Depending on the cost of each fee this could bring your total set up expenses to $300-$1000.
If you are staying with your current lender but moving to a new product, you may also be charged a variation fee for this.
Any lender fees accrued when refinancing will be added to your new loan, so to avoid paying interest on these over the life of your loan, you may want to consider paying off any costs when they are first charged.
Lenders Mortgage Insurance (LMI). For each new loan, a lender will look at the loan-to-value-ratio (LVR) to assess whether Lenders Mortgage Insurance is required. If you are borrowing more than 80% of the current value of the property, you will have to pay Lenders Mortgage Insurance again.
To avoid paying Lender Mortgage insurance, your mortgage broker may be able to arrange an upfront valuation of your property, so you will know whether you will be liable for Lenders Mortgage Insurance before proceeding with a refinance.
What are the loan features I will require?
Choosing a new home loan involves much more than finding the lowest interest rate. Home loans come with a range of features, which can provide flexibility and help you pay off your mortgage faster.
Depending on the lender and home loan type you choose, some of the features you might be able to access include an offset account, free redraw, unlimited extra repayments and direct salary crediting.
There are many things to consider before signing up for a new loan, so do your homework to ensure you are getting the best deal.
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About Us
James Sylvester commenced Mortgage Brokering in 2009 and launched the Mortgage Broker Brisbane business "Your Home Loan Consultant" in February 2012.
James Sylvester
principle of your home loan CONSULTANT
James Sylvester's knowledge and experience provides his clients with a unique service offering.
As "Your Home Loan Consultant", you can rest assured knowing that we will always have your best interests in mind.
With over 10 years of experience in the finance industry, our team in Brisbane are here to assist you.
We pride ourselves on transparency and communication, and no matter what you need – we are never more than a phone call away.
Your Home Loan Consultant is a full-service Mortgage Brokerage. Assisting first home buyers to get into their own home and then with the correct guidance show them how to create wealth through property investing.
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