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A mortgage is most likely the largest investment you will make, so you should regularly assess your home loan and see if refinancing can provide you with additional benefits. #refinance #homeloan #Creditcarddebt #mortgage#interestrate #broker #investment
Refinancing is when you switch your mortgage to another lender. There can be multiple benefits to refinancing.
1. To cash out home equity
Refinancing your home loan can be a great way to access home equity so that you can invest in another property. This is called ‘gearing’. Alternatively, you can use your equity to renovate, for home improvements or any other worthwhile purpose.
2. To consolidate debt
Rather than carrying personal loans or credit card debts at high rates, you should consider consolidating them into your home loan so you can pay off your debt at the lower rate. This enables you to pay the debt off faster and potentially save thousands of dollars in interest payments providing you maintain you repayments at current levels.
Madhu and her team can help refinance your home. Discuss on 0425 341 086.
1. Home loan repayments to increase
The financial markets expect the RBAto start putting up rates in 2018. This means repayments could also increase, typically by $50 for every 25 b.p. rise on a $400,000 loan. With any rate rise, borrowers are likely to turn to brokers to ensure they are getting the best deal possible. #HomeLoan #Mortgage
2. Property prices to cool
Banking regulators want to see a slowdown in house price growth, and that’s what we expect in 2018. Limits on investor and interest-only loan growth may remain for the foreseeable future, which may continue to dampen investor activity and cool property prices. We’re already seeing this intervention starting to take effect. Brokers will continue to play a critical role in explaining the ever-evolving regulatory changes affecting property investors and advising them of the best lending options available.
3. More borrowers may switch loan type
The big switch is on in the mortgage market. In the past six months, the number of interest-only loans held by the banks have dropped by around $36bn, according to APRA. The trend of switching to principal and interest loans may continue in 2018, and is an important transformation that brokers can continue to assist their clients with. #Loanswitch #refinance
4. First home buyers to make a comeback
With investors taking a step back, first home buyers may find more opportunities in 2018. They will continue to benefit from competitive interest rates, new concessions (if eligible) and ample apartment stock, although checks should always be made to ensure quality buys. With more first home buyer activity, brokers may expect to spend more time with their first-timer clients, coaching them through the journey as they get their foot in the door. #firsthomebuyer #firsthome #newhome
5. Upgraders may continue to renovate
We’ve seen a substantial increase in renovation loan applications in 2017, a trend that we’re likely to see well into 2018 as home owners choose to renovate over moving. Upgraders are avoiding exorbitant moving costs such as stamp duty. We’re seeing some more top-ups as people take advantage of lower interest rates and leverage the extra equity in their property in order to finance renovations. #Renovation #InterestRate
6. Owner occupiers to win from competitive lending rates
With limits on investor and interest-only growth, banks are competing over a smaller piece of the lending pie, and are offering some great deals for owner occupiers. Brokers may see more consumers take action, stimulated by heightened advertising activity among banks. #ownerOccupied #HomeOwner
Container home
As a home owner one of your main considerations will be initial and ongoing maintainance costs. A new trend to consider is a container home. #HomeBuyer #FirstHome #Homeconstruction #GrannyFlat #HomeLoan #Containerhome #innovation
These homes are made from old shipping containers which are then modified to fit the size requirements of the home owners. They can be used as building blocks for homes, granny flats, shops or offices. The containers are like giant Lego blocks that can be built into anything at all.
They are cost effective, quick to build and tolerate harsh weather well (imagine transporting goods on cargo ships and being handled by cranes and trucks for years). These homes are eye catching and talking points and you sure to be the star.
So, consider this new trend while looking into your next home be it an investment or one you are planning to live in. Call Madhu on 0425 341 086 to explore the best finance option for you. Read more on our Facebook Page or on LinkedIn.
