Is it time to consider your refinance options?
26 January 2017
The festive season can put quite a strain on finances, leaving many of us looking for ways to cut costs and get our savings back on track. Interest rates have hit record lows over the past year, so if you’re one of the millions of Australians with a mortgage, it might be time to review and reconsider your home loan options - but there are a few things to consider first.
Before researching and comparing other deals, review your current situation – check your repayments, your balance, loan period and confirm your interest rate. Less than 10 years ago, standard variable mortgage rates were almost double what they are now, so chances are you could be repaying more than you need.
When choosing between fixed or variable rate loans, evaluate your short term and long term goals. If you want to reduce the life of your loan by making extra repayments, a variable rate might be a more viable option. However, a fixed rate will allow you to take advantage of some great interest rate specials.
Refinancing can also help with your overall financial situation. If you have equity in your property, you may be able to borrow more than your current loan. This could allow you to use the extra money to pay off, or consolidate debts such as credit cards, or increase the value of your home by renovating.
Although refinancing might sound pretty good at this point, there are costs to consider. You will often be required to pay a titles office fee and borrowing costs on your new mortgage. You might even receive a break fee penalty if your current mortgage is on a fixed rate period.
So if you want to explore refinancing your home loan, what next? You can find out more by visiting your local Suncorp store, call 13 11 55 or visit our website.
About Suncorp: Suncorp Group includes leading general insurance, banking, life insurance and superannuation brands in Australia and New Zealand. The Group has 14,500 employees and relationships with nine million customers. Suncorp Group Limited is a Top 20 ASX-listed company with $94 billion in assets. Suncorp Bank is Australia’s leading regional bank servicing more than one million personal, SME and agribusiness customers