Refinancing

Selective focus of calculator and wooden house shape board written with Refinance Your Home on a

Is now the right time to refinance?

Refinancing your existing mortgage can be one of the most effective ways to access equity in your home for a variety of reasons. For example, did you know that you could use the money in your home to pay off other debts that carry higher interest rates than a mortgage does, like a credit card debt or a car loan?

Why pay interest of 18% on your bank’s credit card debt when you can add that debt to your mortgage and pay a much lower interest rate? Sometimes it just makes sense to refinance your mortgage to lower your interest payments. Call me today on 0402 203 303 and find out whether:

  • you can consolidate your debts into a lower mortgage payment and pay fewer bills each month
  • you can borrow that extra cash for renovations or other big plans

You can borrow up to 90% of your home’s value.

Start contributing to your bottom line today…not your bank’s!

Call Rob

0402 203 303

Rob Walmsley Newcastle Home Loans NSW

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Refinancing

Refinancing can be a great way to save money if you believe you are paying too much for your loan, but there is more to it than just finding a loan with a lower interest rate and making the change.

By ROB WALMSLEY

Before making the switch, ensure the savings you could make outweigh the fees involved.

Here is a guide to the different exit costs to consider:

Exit Fee

Although loans taken out after 1 July 2011 are not subject to deferred establishment, or exit, fees, those taken out prior may still be. Also known as ‘early termination’ or ‘early discharge’ fees, they can sometimes be paid by your new lender but are normally applied to an early contract exit.

Establishment Fee

Also known as ‘application’, ‘up-front’ or ‘set-up’ fees, these cover the lender’s cost of preparing the necessary documents for your new home loan. They are sometimes payable on most new loans.

Mortgage Discharge Fee

Covering your early legal release from all mortgage obligations, this fee is not to be  confused with an exit fee. Also known as a ‘settlement’ or ‘termination’ fee, its purpose is to pay your current lender for preparing the discharge paperwork and legal costs. Generally this is a few hundred dollars.

Lender’s Mortgage Insurance (LMI)

Whilst at purchase you can borrow up to, and in some cases over 95% of the value of your property, when it comes to refinancing, 90% is the maximum generally allowed. If it has been some years since you purchased, the increase in value generally means there is little likelihood you will have to pay again.

Other Government Charges

Fees are applied for the registration and deregistration of a mortgage.

Break Fee

If you are on a fixed rate loan, your lender is likely to charge you a fee for ‘breaking’ out of the loan term. This fee varies depending on the amount owed, the interest rate you were locked into, the current interest rate and the duration of your loan.

In all recent refinances I have organised, the interest rate has saved the clients substantial amounts in monthly payments due to lower rates.

For more information, contact me on 0402 203 303 or [email protected]

“Refinancing can be a great way to save money if you believe you are paying too much for your loan, but there is more to it than just finding a loan with a lower interest rate and making the change.”

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