As expert Australian mortgage brokers at First Choice, we often have clients asking, is now the right time to refinance?

Generally, this is a tricky question for our mortgage brokers as every client circumstance is unique, and a whole host of factors need to be considered to determine the best refinancing time.

Although according to the research, Australians may be missing out on great potentials if they don’t refinance in the last few months of 2021. As statistics from Lendi Group showed, refinancers might save approximately $2,000 by reducing their interest rate by less than 1%.

However, despite these favourable lending circumstances, low-interest rates, and the fact that 53% of finance brokers feel now is an excellent time to refinance, only 445,000 of the 6 million current mortgages have refinanced in the last year, according to a recent poll by Aussie.

In addition, approximately 60% of Australian borrowers have not evaluated their mortgage in 2021 and are not sure that they are currently getting a decent deal on their house loans.

Most respondents claimed to understand the significance of refinancing a house loan regularly, yet 22% don’t know where to start, 18% don’t feel they can obtain a better deal, and 24% fear they would wind up paying more money.

Therefore, the research tells us that more Australians need to be educated on financial literacy!

A mortgage broker or finance broker may assist Australians in understanding how their current home loan compares to the market. In some instances, finance brokers can assist clients in negotiating a better rate with their present lender.

A simple home loan comparison conducted by a reputable mortgage broker reveals that interest rates differ significantly amongst lenders. Some lenders save their most attractive rates for new customers, shaving even a fraction off the existing rate, resulting in cheaper home loan repayments.

Plus, in today’s hotly competitive market, finance brokers have seen some Australian lenders offer extremely low fixed rates down to 1.67 per cent!

According to leading finance brokers, the last time interest rates on home loans were this low was in January 1959.

Although as Australia’s record-low interest rates are predicted to rise in 2022, this is another reason why now is an excellent time to refinance your mortgage with a finance broker.

Essentially, present deals for mortgage refinancers are the best Australia will ever see…

As a result, homeowners should take this opportunity now to reduce their house loan interest rates by switching to a new home loan, a procedure known as refinancing.

What are the Benefits of Refinancing?

Here are five benefits of refinancing with a mortgage broker:

Spend less on your monthly repayments. In today’s market, no homeowner can afford to presume their loan is a fair deal. Primarily if you’ve held your loan for a few years, there’s a good possibility you may save money.

Pay off your mortgage faster. By refinancing to a lower interest rate, you may reduce your total interest payments and, as a result, your total home loan sum. It’s important to remember that it doesn’t have to take 25 or 30 years to pay off a mortgage.

Additional equity can be used to support purchases or lifestyle objectives. Refinancing is frequently utilised to free up equity in your present property to fund purchases or lifestyle aspirations. Having access to equity, for example, might assist you in purchasing an investment property, renovating, or building, among other things.

Through the process of ‘debt consolidation,’ refinancing your home loan can give you a chance to simplify your debt and perhaps lower the overall interest you’re paying on various obligations. Debt consolidation entails combining numerous high-interest loans into a single reduced-interest obligation – which might be your house loan – and may result in lower overall monthly payments.

Improve your loan features. Many Australian homeowners may have loans unsuitable for their needs or have costly underutilised features. Having the appropriate features may save you a lot of time in the long run, so it’s worth obtaining professional finance broker guidance to know the various loan features available and how you can profit from them.

What is the Process of Refinancing?

Thankfully, refinancing does not have to be a complicated process if you enlist the help of a reputable mortgage broker or skilled finance broker!

Switching to a new loan may appear to be a nuisance, but it can be surprisingly simple if you get in contact with First Choice Mortgage Brokers to help you discover a better loan and handle the paperwork on your behalf.

It’s worth noting that there is no one-size-fits-all answer when it comes to selecting ‘the finest home loan’. It’s a matter of locating the best loan for your specific requirements.

As your mortgage and house loan interest rates fluctuate, your mortgage broker will take the time to understand your goals and circumstances.

When your new loan is authorised, your old bank will be contacted and notified that you want to pay off the debt, and you will be requested to submit the payout numbers that will be in effect on settlement day.

Your new lender pays off your previous loan, and you begin making payments on your new house loan. Refinancing is as simple as that!

What Should You Think About Before Refinancing?

It’s important to note that refinancing isn’t free. Depending on the loan, several costs might be levied, such as application fees, appraisal fees, discharge fees, and more. If you have a fixed home loan with your existing lender, you may also have to pay a hefty break fee. These can sometimes go into the thousands of dollars.

Specifically, if you want to refinance but have less than 20% equity in your house (that is, you are borrowing 80% or more of your property’s market value), you will be required to pay mortgage insurance to the lender (LMI). This is true even if you paid LMI when you initially purchased your home.

Your First Choice Mortgage Broker can do the numbers to see if refinancing would still benefit you even if LMI applies.

Avoid the what-ifs and chat to your local First Choice Mortgage Brokers about refinancing now instead of wondering if switching to a new home loan is the best move for you!

Ready to Start a Refinancing? Get Started Today with a First Choice Mortgage Broker!

To discuss your refinancing choices, please contact us; we are the best mortgage brokers in Sydney! We specialise in first-time homebuyers, complicated mortgage applications, business mortgages, and other types of mortgages.

Here at First Choice, our best mortgage brokers Sydney teams know how difficult these decisions are for homebuyers to navigate through, which is why our mortgage broker Australian specialists are here to assist you through the entire home loan process!

First Choice, our best mortgage brokers Sydney teams have over 30 years of experience in the finance and banking Industry. We are well-positioned to assist you with all your financial requirements. Our mortgage brokers in Australia are available to discuss your current situation and how First Choice Mortgage Brokers can assist.

We offer all mortgage broker services for FREE from business loans, home loans, investment properties, debt consolidation, personal risk insurance, commercial insurance brokers, and everything in between! So, you can sit back and relax while we do the running around to find the perfect fit for you.