Why you should consider refinancing your home loan

Written By Georgina Harvey

With interest rates soaring and house prices looking stable, now’s the time to consider refinancing your home.

In this current competitive market, it’s highly likely you’ll find a better deal with another lender. Especially if you have a fair amount of equity in your home.

 

According to a recent article in the Australian Financial Review there is now a 0.75% spread on average between new loan and existing loans; i.e. existing customers on average are paying 0.75% more than the banks new customers.

 

With the cost of living increasing, we strongly encourage you to do a review to see if you can save on your mortgage repayments. At MDH Lending, we can do this at no cost for you.

 

In the past few months, we’ve conducted reviews and found better rates for many of our customers. For example;

 

1.     Ned* is currently with ING Bank on variable @ 5.72%  (well above the current carded rates with most lenders). We assisted Ned to secure a loan with another lender with same features/benefits @ 3.69%

 

2.     Lucy and Mark* are currently with ANZ on variable @ 4.77% (well above the current carded rates with most lenders) Lucy and Mark were able to secure a new loan with another lender with same features/benefits @ 3.64%

 

3.     Stacey* is currently with NAB on variable @ 5.20%  (well above the current carded rates with most lenders) Stacey refinanced her home with another lender with same features/benefits @ 3.74%

 

*Not their real names.

 

A 1% rate reduction on a $300k home loan could result in saving of $250 per month! It’s well worth at least conducting a review of your home loan.

 

Why should you consider refinancing?

Improve your current financial position by easing pressure on disposable income

  • Save money and interest paid over the term of loan.

  • Free up income to assist with increase in living costs.

MDH Lending keep the process of refinancing simple

  • No need for customer to contact current lender, we will liaise on your behalf

  • We will do all the hard work for you!

Loan approval timeframes can be very quick

  • 1-2 day loan approval is possible based on current lender service levels and the relationship we have built with many banks and lenders.

Some lenders are offering cash-back deals (normally $2,000 to $3,000)

  • This cash-back option absorbs any costs involved with the refinance process as well as providing extra cash for personal use.

If you’d like us to review your home loan, please reach out. We will do this for you at no cost!

Georgina Harvey