Think of your mortgage like a phone plan. When your current “plan” (fixed rate) is about to end, you’ve got two main choices: stick with your current provider or shop around for a better deal.
With the changes to the Official Cash Rate (OCR) that has been happening lately, we are seeing interest rates slowly come down. If you are looking at your current interest rates and wondering what to do, we encourage you to come and have a chat. There are a few options to think about.
Staying put (Refixing)
Think of this like renewing your phone contract with the same company. It’s easy, there’s no mountain of paperwork and you keep working with the bank you know. Hopefully your current bank has better rates than what you are currently on. But … your situation might have changed since you first took out this mortgage, and it may not be the best fit for you anymore.
Shopping around (Refinancing)
This is like switching to a different phone provider for a better plan. You might do this to get a lower interest rate. Even a small drop in interest rates can save you thousands over the term of a mortgage. Lower monthly payments mean more cash in your pocket.
Potentially your situation has changed, and your current loan structure isn’t working for you anymore. This could mean changing your loan length or switch to a loan type that works better for you. This is a great time to adjust things to match your current life situation.
Refinancing will more than likely come with some costs as you are essentially creating a whole new mortgage agreement. This is important to consider for your situation. A Mortgage Adviser will help you understand these costs and work out if it is worth the risk.
Come and talk to a Mortgage Adviser
Before you make any decisions, it is important to think about your money situation right now, your future financial goals, if there are any costs involved to switch. Talking to a Mortgage Adviser is a great start.
A Cole Murray Mortgage Adviser will look at the big picture. They know all the different lenders (bank and non-bank) and their criteria. A Mortgage Adviser will give you a full scope of advice, help you understand all your options and they have your best interest at heart. Our Mortgage Advisers are not aligned with any bank and are experts in their field. They keep up to date with the latest interest rates, market conditions and application processes. Give us a call.
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