Borrowers: Home loan refinancing (or switching)

Home loan refinancing

Given it will most likely be the largest debt that you pay off in your lifetime, consider a proactive ongoing approach to paying off your home loan.

loan refinancingThis can reduce the amount of interest you pay, and decrease the life of the loan. In turn, you can free up cash flow sooner and direct it elsewhere, such as saving and investing for the future.

One consideration is refinancing (or switching) if you find a more appropriate home loan.

Home loan refinancing
Home loan refinancing occurs when a borrower repays their home loan with one lender (the previous lender) using the proceeds of a new home loan obtained from another (the new lender).

Here is a broad outline of the steps involved in the refinancing process:
  1. The borrower contacts the new lender and lodges an application with all required documentation.
  2. The new lender considers the documentation and assesses the application.
  3. The new lender conditionally approves the application and sends a letter of offer to the borrower.
  4. The new lender orders a property valuation.  Read more…

Here's why you should think about refinancing

Pssst; want to save some serious money?

How long have you had your home loan? When was the last time that you checked the interest rate that you are being charged? Never thought about refinancing, here's why you should.

A standard variable rate home loan is being charged 4.39% (comparison rate 4.49%). With a 3-year fixed rate loan available at 2.19% (comparison rate 3.15%) with full offset, how much could making the switch save you?

Existing loan:

existing loan 

Home ownership without a full deposit

Looking to buy a home, but do not have the full deposit?

There are options.

saving home depositLet's face it, saving the deposit for a home can be hard when you are paying rent, and sometimes 'life happens'. Can you achieve home ownership without the need for a full deposit? The short answer is yes, there are options – when buying a home there are 3 things that you need to bear in mind – the purchase costs, moving costs, and the deposit.

  1. Purchase costs – if you are a first home buyer and the property being purchased is under the relevant state limits for the property value you may be eligible for stamp duty concessions, or even waiver. This means that depending on your solicitor or conveyancer your purchase costs are generally under $4,000 (but please check this with your professional adviser in this area). You will need to insure the property and depending on the build, location and so on this cost will vary, so talk to an insurance broker for assistance.  Read more…

Best Interest test

Coming soon the 'Best Interest' Test

If you followed the Banking Royal Commission and the subsequent media reporting you will have heard about a new "Best Interest Duty" that is being introduced for the broking industry. 

Image: WAGstockLet's be clear on one thing though, for us what is in your best interest is also in our best interest as well; so while there is always the odd rogue (as there is in every industry unfortunately) most brokers already act in their clients best interest – if for no other reason than it is good for business.

What is best interest? 

There are a number of variables in the equation that need to be considered and questions to be asked, some of these are:

  • How long will the lender take to give an approval?
  • Are the borrowers eligible for the lenders loan offer?
  • What is the interest rate and other fees?
  • Features and Benefits?
  • Time for an approval

Read more…

Planning on buying a new asset for your business?

Now is the time to talk to your accountant and broker

Get your finances arranged with your overall tax planning

  • RFS carGet the structure that matches your cash flow
  • Get the best deal from a range of lenders
  • Keep your equipment separate from your mortgage finance so your existing lender does not tie them together
  • Keep the fuss to a minimum

Almost every business has, or should have, some type of equipment finance.

It may be as simple as the car that you use to run around town with, all the way through to manufacturing and transport equipment.  Read more…

Collins Hume
is a CPA Business
Liability limited by a scheme approved under Professional Standards Legislation.