Low interest rates are a hot topic with the official interest rate on the verge of another rate hike by the Reserve Bank of Australia (RBA). As we dive into Spring and approach the holiday season, now is the perfect time of year to reassess whether you are happy with your current mortgage and household budget, or whether you are better off to consider your options to refinance to a new home loan with low interest rates. Some of these options include:
- Refinancing to low interest rates. As many economists believe, the RBA will most likely increase interest rates in the coming months, locking in a lower rate for a period of time can save you some money.
- Repaying your home loan fortnightly, or even weekly can not only split up that big lump sum payment you need to make, but can also help you save money and time in the long run. You may also choose to direct any savings you have from other accounts into your mortgage to further lower the principal (and therefore, interest charges). Be careful though – make sure you have the ability to withdraw that money quickly if an emergency pops up.
- Refinancing allows you to consolidate high interest debts like credit card debt and personal loans into your mortgage. This allows you to focus on paying down a single debt with a lower interest rate.
- You can refinance and switch between variable or fixed rate home loans. You can lock in a variable low interest rate or perhaps you would prefer to refinance to a fixed rate so you can enjoy the certainty of knowing what your loan repayments will be, despite moves by the RBA or your lender.
A major reason for refinancing is to unlock some of the equity built up in the home to achieve other goals – like renovating, purchasing an investment property, taking a holiday or paying for a wedding.
If you think refinancing with low interest rates might be a good idea for you, call our refinancing experts at NSW Mortgage Corp on 1300 137 778 and chat to a consultant today.