Do you remember dial-up internet access? How about audio cassettes? Don’t worry if you don’t; they are, of course, a thing of the past.
A 30-year mortgage with one lender is a bit the same – a thing of the past and something that is largely obsolete nowadays. Especially given the present climate.
With the cost of living going through the roof and home loan interest rates shooting up from a record low of 0.1 since last May, more and more people are refinancing their mortgages – 2,370 every working day in Australia, to be precise.
Homeowners have faced the fastest tightening cycle in a generation, and many are leaving their current lender for a more competitive mortgage elsewhere.
Analysis from the Australian Banking Association (ABA) found 70 per cent of bank customers who refinanced their mortgage in the past six months did so with another lender.
If, like them, you feel it’s time to shop around, here’s why you should use a 1st Street Mortgage Broker to refinance.
Expertise you can trust
At the moment, there is strong competition in the home loan industry. Banks are eager for your business and are offering all sorts of sweeteners to get you on board. Cashback offers. Rate discounts. Package deals. The whole shebang. So, how do you know which home loan is most suited for you?
That’s where you need a professional on your team. A Sydney Mortgage Broker is a trained finance specialist. We know the system and which products best suit our clients’ needs. The 1st Street Financial team are also across all the recent industry developments, so you gain access to a wealth of knowledge by working with us.
Tailored finance solutions
There’s no one-size-fits all mortgage. Everyone’s financial circumstances and aspirations are different, which is why you need tailored finance solutions. Your Sydney Mortgage Broker will find a loan that’s suitable for your particular needs.
If we think you could benefit from loan features like an offset account or redraw facility, we’ll describe why. But we must work in your greatest interests and won’t push any extras on you that you don’t really need.
Options, options and more options
If you go directly to your existing lender asking for a more competitive rate, you only get what they can offer i.e. their loan products and the rates they are able to put on the table.
Your Sydney Mortgage Broker, on the other hand, has access to the full assortment – a panel of lenders with diverse types of products, features and benefits.
What about commissions? The fees we receive are fairly similar across lenders. This ensures there’s no incentive for a broker to suggest one over another. Our role and obligation is to act with our clients’ best interests.
Make your life easier
Trying to figure out all the different home loan products out there can be stressful and overwhelming. With a Sydney Mortgage Broker, we can take the burden out of refinancing. We can also coordinate with your chosen lender and facilitate the whole process.
Prepare for the fixed rate cliff
One fifth of Australian home loans will go back from fixed to variable in 2023. Do you fall into this category? If you do, it’s worth talking to a Sydney Mortgage Broker about your refinancing options. Your current lender’s variable rate may not be the most competitive or suitable for your circumstances, so it’s important to get a second opinion.
Common reasons to refinance
Like to chat?
We at 1st Street Financial understand the market. We understand mortgages. And we’ll take the time to understand your financial situation and goals.
Speak to us about how your home loan compares to others, and we will explain if changing lenders could be financially worthwhile. Get in touch today.
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We can help get you into your new home.
We’ve worked with clients across Australia to access the different first home owner grants (FHOG) as well as the various stamp duty and other concessions that may be available depending on which state you are in. We can talk you through your various options as well as helping you compare things like buying vacant land vs. an established home.
Use our online calculators to work out how much you can borrow, loan repayments, stamp duty and lots more.
