Refinancing

Why is Refinancing So Popular?

While refinancing is something many homeowners never consider, the truth is there are many very good reasons to consider refinancing an existing loan, such as:

  • To obtain a lower rate – saving you money!
  • To perform renovations or improvements to your home – adding value, and potentially making you money!
  • To reduce ongoing fees / costs, and obtain more flexible terms – enabling you to pay your load off sooner!
  • To consolidate / pay off smaller personal consumer credit debts that attract much higher interest rates, such as credit cards and car loans – saving you money, and reducing the time it takes to pay off debt!
  • To use the equity in your property to invest, purchase a car, go on holiday, have elective surgery, assist children purchase a home, start a business, or virtually anything else!
Looking at refinancing solutions with Vie Financial.
Gene Medwin

At Vie Financial, we give people options. Our business is based on ensuring people do not pay one cent more than they have to for their finance.

In addition to comprehensive advice, we provide our clients with a range of options to maximise their spending ability and minimise their debt burden.

If you have a home loan that has not been reviewed by Vie Financial in the past 12 months, please contact us for a free no obligation review.

If you have a home loan that was originated by one of the four major lenders, the chances are one of the other 36+ lenders we have on our panel will be able to provide you a much better deal.

How Soon Can I Refinance My Existing Mortgage?

There is no fixed time period to wait before you refinance an existing home loan? You will, however, need to understand the cost implications of doing this. Each different home loan product will have a set of fees and conditions around refinancing, or how they vary the amount within the original loan period. These can indicate whether it’s worthwhile refinancing your loan

Is It Difficult to Switch Lenders?

Switching your home loan to a new lender can be complicated. There is a fair amount of paperwork and fees involved in moving your loan from your current lender, and hundreds of prospective new loans to choose from. This can make the thought of refinancing seem daunting, right? This is where your Vie Financial broker comes in – they’ll do the hard work for you, helping you understand your choices and whether switching will make a difference to you over the life of the loan.

What Should Consumers Look for (and Look Out for) When Choosing a Specialised Finance Consultant?

Honesty and transparency is paramount. To try and gain your business with lower payments, many brokers will extend the loan terms for individuals looking to refinance, which extends the amount of time it will take to pay off your loan. This is a debt reduction strategy killer and a big red flag, which should be avoided at all cost.

You should only refinance for the remaining period of your existing loan term. Not only will this will allow you to reduce your monthly payment, but it will keep you on track to pay off the mortgage within the same period of time.

To further maximise the benefits of refinancing, you can make the same payments you are making with your current lender, which will enable you to pay the loan off the new loan even faster!

Why Refinance With Vie Financial?

In addition to honest, transparent advice and a vast network of lenders to ensure you receive the best rate and refinancing options, our customer service is second to none!

As an independent finance consultant, we’re simply an unbiased middle man. We don’t have our own home loan or other finance products to sell.

We act as an intermediary between our clients and lenders which ensures our clients receive the best interest rates, loan terms, and most suitable product options for their needs.

Vie Financial Provides Personalised Finance Solutions.

At Vie Financial, we not only help our clients secure finance for investment properties and to purchase the home of their dreams, we also specialise in assisting people refinance to ensure they are receiving the lowest possible rate for their personal situation.

In fact, 50% of our business is based around helping people save money by refinancing.

Is Mortgage Insurance Needed When Refinancing?

Again, when refinancing, it’s essential to choose a broker that is 100 per cent transparent. If you’re refinancing and need to take the value of your loan above 80% of what the property is worth, then mortgage insurance will need to be paid.

Given mortgage insurance can be quite expensive, one of the things we look at is whether or not it is worth refinancing if this needs to be paid. This needs to be carefully reviewed and considered. There is no point moving to a lower priced loan product if the financial gain is not going to far out weigh the cost of paying mortgage insurance.

Quite often, our clients have already paid mortgage insurance on their current loan. If this is the case, you need to receive a much lower interest rate to justify paying potentially thousands of dollars in mortgage insurance again just to refinance.

At Vie Financial, we work with every client individually, and will not suggest refinancing if it isn’t the best course of action for the customer’s personal financial situation.

How Do Deposits Affect Refinancing?

Deposits aren’t traditionally needed for refinancing. However, there are specific scenarios where contributing extra money may make sense.

One such scenario in which a “deposit” may be needed is if someone owes $84,000 on a home worth $100,000.

In such a scenario, the client may want to elect to put in $4,000 to stay below the 80% mortgage insurance threshold.

Doing so would allow them to refinance for a better rate and avoid paying mortgage insurance.

What Separates Vie Financial From Other So-called “brokers”?

In two words: Our people and service.

At Vie Financial, our people provide exceptional service and operate with integrity. When you choose to work with Vie, you will always receive honest and comprehensive advice in regards to refinancing.

We want to ensure you’re in a better position financially. We don’t refinance people for the sake of refinancing. We look at what a customer wants to do, the home loan package they’re currently on, and will only suggest refinancing if it’s going to be of considerable financial benefit to them.

We are also a friendly franchised business. All of our franchised offices are operated by people who live and work in the community they are located within.

Unlike large branches ran by employee managers, all of our franchises are locally owned small businesses.

Refinancing Case Studies

We have hundreds of refinancing success stories to boast about. However, here are a couple of recent examples that stand out:

Case Study #1

We had a client who wanted to obtain $25,000-$30,000 to build a shed, with a remaining home loan term of 27 years.

We were able to refinance them with another lender, who was offering a much better rate. By accessing some of the equity they had amassed within their property, they were able to secure the $30,000 needed to construct the shed, kept their loan term at 27 years, and reduced their monthly repayments.

The clients were able to obtain the money they required, build the shed, increase the value of their property (by building the shed), and reduce their loan payments, all without resetting or extending the loan term. It was a win-win-win-win!

Case Study #2

We had an investor in Queensland with five properties in their portfolio. We were able to move all of the properties to a new lender, again keeping the loan term the same, and save them over $1,100 per month in repayments. The significant monthly savings have enabled them to purchase additional investment properties for their portfolio. We provide options that enable opportunity. To explore yours, contact us today!