The cash rate has plummeted to an all-time low of 1 per cent and banks have passed on some of the 50 basis-point rate-drop to borrowers. The new financial year and the interest rate drops signal a great time to review your home loans and make a significant dent in their size and term.
Call Master Builders Financial Services for a home loan review to see whether you should play off your bank with another bank or whether you should refinance to another lender.
Steps to consider via Master Builders Financial Services (MBFS) in July:
- Use MBFS to ask your lender to drop your mortgage rate
- Contact MBFS for the best rates you may be eligible for with other lenders
- Use an offset account to significantly reduce the term of your loan as well as save interest repayments
- Ditch loans with fees which do not give you value. Those with annual fees are a great place to start.
- Pay extra on your variable loan, which can reduce your mortgage by years and save you thousands.
- By not reducing your repayments with the recent rate drops, you would be, in effect, now paying more into your mortgage, saving you thousands and shedding time off your term.
A word of caution:
Banks still have not changed their lending guidelines, so there is still a large risk by going directly to a bank and completing a Statement of Position as you may not be able to afford your existing loans, putting you at risk.
If your clients are struggling to get finance, you are able to refer them to MBFS for specialist finance advice usually reserved for members.
Approach only MBFS or your trusted finance broker for specific credit advice.