Posted Thursday, 02 October 2014 at 00:05 by Shape Home Loans
Tagged: Investors | Home Buyer | home loans | property investing | interest rates | Mortgage reduction | Promotional rate | Competition | news | Low Doc loans | Hint/Tip | Self employed Loans | Wealth Creation | Free Property report
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The refinance season has arrived! Lenders are offering incentives ranging from cash back to low rates
There's no better time to reconsider your financial position and mortgage, as we enter the spring refinance special season!
Lenders are offering a range of spring incentives (Must apply for the loan by the end of Nov/Dec- depending on offering/lender) ranging from;
1. Cash back - $500 - $1,500 cash back depending on the lender
2. NO LMI – ranging from 85-90% LVR
3. Discounted interest rate – Variable rate from a low 4.69% for loans from $150,000 at 80% LVR with 100% offset account (Comparison rate 4.70%)
^ Note: Some of these incentives are available for new purchases as well, depending on the lender and offering.
In general if your loan is under 80% LVR and your loan is under $500,000 if your current rate is over 5.10% variable than you may be better off refinancing at a lower and competitive rate as you could potentially save $900 to $1,500 per year in interest alone (Based on a $300,000 to $500,000 loan on a new average rate of 4.80%)
In general if your loan is under 80% LVR and your loan is over $501,000 if your current rate is over 4.95 % variable than you may be better off refinancing at a lower and competitive rate as you could potentially save $1,050 to $2,100 per year in interest alone (Based on a $500,000 to $1,000,000 loan on a new average rate of 4.74%)
^ Note: Sometimes you don't even need to refinance, it may be as simple as giving your current lender a call and asking them to reduce the rate to match the market.
Some factors to consider when refinancing (it’s not always about the rate)
- - Tax reasons
- - Changing lender for a better loan structure
- - Changing lender for a better overall portfolio position, ie improve serviceability ( Investors)
- - Take out some equity
- - Applying for a special feature ie 100% offset account, interest only features etc..
- - Access to a branch/ type of bank ( Important for some)
Contact us today for a free quote and full loan recommendation/structure.
Call: 1300 74 5626
Visit: Ground Floor, 5 Belmore street, Burwood NSW 2134
Note: Existing SHL customers, you will get a call from your broker over the next 2-4 weeks for a possible review on your situation/current loan.