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Are you flushing money down the drain by putting off refinancing?



Find out how refinancing can help you save.

Every year thousands of families flush their hard earned dollars down the gurgler because they put off the simple act of refinancing their mortgage. If you’re overdue, rest assured that it’s much easier than you may think!

While there are no hard rules about refinancing, it makes financial sense to review the loan when your individual circumstances change.

For example, you may be growing your family, moving to a new location, or getting married.

There are also plenty of reasons that exist outside personal circumstances, including the major financial benefits it can offer, and we’ll run through some of these below.

Refinance to get a better rate

The mortgage market is very competitive, and a deal signed two years ago may not be in your best interest today.

However, if your bank is not in a position to offer you a better rate, there are many lenders in the market who can get you a better deal.

Lock in a great rate

You may have seen the news recently that the RBA kept the official cash rate on hold at 1.5% for a record 21st meeting.

However it won’t stay that low forever!

In fact, half of Australia’s leading economists in Australia’s longest running survey – the BusinessDay Scope economic panel – believe the RBA will lift its cash rate by the end of the financial year.

With so many experts predicting interest rates to rise in the next 12 months, and some banks already increasing their interest rates, now could be a good time to lock in an interest rate on your home loan.

Consolidate debt

Refinancing helps to reduce the interest payable on the different loans you have, which can include credit card, car loans or personal loans.

It basically involves combining all the loans into a new mortgage, giving you one simple repayment to make each month instead of a bunch of them – which can lead to late fees if you forget one.

The best news? All your debts are charged at the home loan interest rate – which is usually much lower than a credit card rate!

Looking to refinance and save sooner? Homestar Finance is offering an owner occupied principal and interest variable interest rate of only 3.54% and comparison rate of 3.59% p.a, with a generous $900 cashback provided upon settlement! A 100% offset account and redraw facility is provided with no ongoing annual or monthly fees. Find out more about their competitive offering here: https://bit.ly/2zxO97x