Well this really depends on the reasons for considering a refinance and many additional aspects must be taken into account such as deferred establishment fees, discharge fees, early termination penalties, set up costs and fees for any new loans. Differences in interest rates alone may not find you a more competitive mortgage when costs such as account keeping fees, annual fees and switching costs may very well end up costing as much as has been saved through reducing the interest rate. Ability Finance can carefully assess your current loan and prepare comparison reports comparing your existing home loan to the most competitive home loans we currently have available that may meet your needs. We can even demonstrate if it may be better to loan restructure with you present lender.
A Home Loan Refinance example
One recent client had a basic variable interest rate home loan from a popular bank with $160,000 remaining to pay .
Simply through maintaining current repayment amounts and the weekly repayment frequency, Ability Finance were able to reduce the term of this loan by a minimum of 3 years with a projected saving of almost $50,000.00 over the life of the loan. This was achieved simply by refinancing with a loan product selected by Mr Client after comparing loan products from 40 banks and other specialist home loan lenders as they were demonstrated in the easy to understand home loan comparison that Ability Finance use to assist clients shortlist and compare home loans.
Another Home Loan Refinance example
Self employed business person requires extra working capital for the business. Existing investment property with adequate equity is refinanced with a lender who allows cash out for business purposes when refinancing.
The additional working capital for the business is obtained at regular residential home loan rates.