In times of global change and uncertainty it’s the perfect time to look at options in reducing costs related to, for most Australians, their greatest asset, the family home.
And in a hazy financial climate spurred by a world pandemic, the home has become an even more important asset to consider. It’s not just a place to eat, sleep and relax, but a private sanctuary from the outside world and, for many in the grip of lockdowns, a central working environment.
The good news is that times of uncertainty can provide a great opportunity to tweak refinancing options to your advantage. The array of social and financial changes thrust upon us recently have combined to make now a good time to crack out the calculator.
But where do you start and what should you be looking to do to fully optimise your home loan?
When was the last time you refinanced your home loan? Even 12 months ago, the finance and lending landscape was in a much different space and options may have drastically changed since then.
A recent RBA study found that borrowers who refinance with another lender or negotiate a better deal with their existing lender, see interest savings.
Many Australians have been significantly impacted by reduced working hours and other COVID-related factors, making it a challenge to meet monthly mortgage repayments. It may just work out that refinancing is a more suitable option than applying for a hardship variation on your loan.
It’s not just your home you should factor in when looking to refinance, it can also help by consolidating your other existing debts, including credit cards, car and personal loans, by combining them into a refinanced mortgage.
This strategy means just one simple repayment to make each month which can help reduce the risk of late, forgotten payment dates and incurred penalty fees. Plus your debts will be charged at your home loan interest rate – which is usually lower than credit card rates, for example.
TIME IS ON YOUR SIDE:
Typically, having the time and capacity to look into refinancing options are the main reasons why people don’t look into refinancing earlier.
And with more and more of us spending more time at home due to the pandemic, it can be valuable to use some of the time usually taken up by social commitments to explore how you can better your financial position.
HELP IS AT HAND:
It can seem daunting at first, but looking into your refinancing options may just be the best use of time you can spend during lockdown.
And the good news is you’re not alone. We’re here every step of the way, available to help you whenever you need and in these difficult times, we know that we need to support each other now, more than ever.
Get in touch with us today to help you navigate hardship variations, or support package options which may be available.