Planning on giving your finances a boost by refinancing your mortgage?
Well, you are not alone. Following a string of rate rises last year, borrowers are refinancing in record numbers, according to PEXA research. And ABS finance and wealth spokesperson, Katherine Keenan, says recent data shows owner-occupier refinancing with different lenders remained at record levels in 2022, above $12 billion.
For many, mortgage repayments take the biggest chunk of the household budget which has become increasingly stretched by the rising cost of living.
We will run through why it may be a good idea to refinance your mortgage, what to look out for, and how you can get a helping hand.
Why refinance?
If it’s been a while since you have revisited your mortgage, you could be paying a higher interest rate than you need to. This is commonly known as the loyalty tax. Lenders like to offer all the bells, whistles, and better rates to new customers in a bid to get their business.
Since they’ve already won you over, you often don’t get invited to the party. But by refinancing, you could have lenders offering sweet new customer deals to woo you.
And if your fixed-rate mortgage good times are about to stop rolling, you too could get in on the new customer woo-fest and shop around for a better interest rate.
With the right offer, it can really pay off – refinancers saved on average $1,524 per year, according to 2022 PEXA data. Over three years, that adds up to an extra $4,572 in your pocket for renovations, savings, extra repayments, or whatever you like. And you don’t always need to move to another lender to see savings. You could refinance or negotiate with your existing lender, depending on their policy.
They may be open to offering you a deal to keep you on as a customer.
Ditch the hassle
If you would like to find out more about refinancing, get in touch today. We know all the ins and outs of refinancing and can shop around to find the most suitable loans for you.
Phone: 1300 855 022
Email: clientservices@zippyfinancial.com.au
Zippy Financial is an award-winning mortgage brokerage specialising in home loans, property investment, commercial lending, and vehicle & asset finance. Whether you are looking to buy your first home, refinance or build your property investment portfolio, the team at Zippy Financial can help find and secure the right loan for you and your business.r
About the Author:
Louisa Sanghera is an award-winning mortgage broker and Director at Zippy Financial. Louisa founded Zippy Financial with the goal of helping clients grow their wealth through smart property and business financing. Louisa utilises her expert financial knowledge, vision for exceptional customer service and passion for property to help her clients achieve their lifestyle and financial goals. Louisa is an experienced speaker, financial commentator, mortgage broker industry representative and small business advocate.
Connect with Louisa on Linkedin.
Louisa Sanghera is a Credit Representative (437236) of Mortgage Specialists Pty Ltd (Australian Credit Licence No. 387025).
Disclaimer: This article contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. This article is not to be used in place of professional advice, whether business, health or financial.
