Mortgage refinance is becoming a popular financial solution, especially for those who are burdened by large monthly instalments or multiple debts, or if you are just shopping around for the best available deals in the market
Mortgage refinance can prove beneficial in several ways:
- Obtain a lower interest rate
Different lenders run different campaign from time to time, to meet their budget in their chosen target market within a short period of time, a bit similar to car dealers. What this means is it pays to stick with your trusted broker, to be informed of specials early to take action before they get withdrawn from the market. These specials generally are not advertised to the public and only active brokers are aware of them
- Being informed and making educated decision
Many lenders are very well-oiled in their advertising for specials, and many consumers continue to be stunk by fees and charges and all kinds of restrictions in the fine prints. Being educated means engaging a broker to help analyse and decipher whether a good deal is really a good deal.
- Exploring the possibilities outside major banks
How time have changes and very few people visit bank branches nowadays. What this means is as consumer we should evaluate whether continue paying for their branch operating expense is a good idea. Smaller lenders and credit unions do not have huge advertising budget and branch operation expense like the majors, hence able to pass on the savings to customers. It pays to stick with your trusted broker to explore the possibilities.
- Consolidating multiple loans into one repayment
Servicing the instalments for two or more mortgages at the same time can be troublesome for most people. Your credit rating could be affected if any one of these repayments are not met on time. Consolidating all these loans into one monthly repayment can be one of the best budgeting solution ever. This way we are more likely able to reduce your interest cost, lower your fixed repayment and introduce longer loan term option to preserve your cash flow.
- Making cash provisions for emergency situations
A common strategy as part of refinance is top up or extract more equity out of your property. Most people are amazed how much their houses have grown in value over the years to make this possible. This surplus cash from top-up/equity extract can be parked in an offset account to cover any of your personal and investment contingencies. The lenders are generally more willing to lower their interest rate when you top up/extract more equity out of your property
- Better bargaining power
Best Melbourne Brokers pride ourselves in our ability to negotiate much better interest rate for our clients than if they are to visit a branch directly. This is due to our group buying power (large amount of loan settlements every month) and the need for respective lenders to maintain good relationship with us.
All in summary, the decision to refinance is one that should not be taken lightly, it is strongly recommended that you have a trusted and experienced broker on your side to look after this for you.
Best Melbourne Brokers offers some of the lowest and most competitive mortgage refinancing rates in the market. Regardless of your situation, whether it is to consolidate existing mortgages or obtain a better rate, we will give you the best solution possible.
