Why Use A Mortgage Broker To Refinance?
If you’re looking to refinance, you’re not alone.
According to the Australian Banking Association (ABA) 2,370 people refinance their mortgages every day in Australia. Furthermore, data from CoreLogic shows that in late 2023 nearly 70% of those planning to refinance intend to use a broker.
If you’re considering simply going to your bank to refinance, you may be asking yourself why. Let’s break it down.
Staying with the same lender is soooo passé
Do you remember dial-up internet access? How about audio cassettes or video tapes? Whether your eyes are now going moist with nostalgia, or you’re blankly staring at this page thinking, “audio…what?” don’t worry; they’re ancient history.
These days, a 30-year mortgage with the same bank is pretty much the same; something that used to be quite common, but is now largely obsolete.
Homeowners have experienced the fastest tightening cycle in a generation, and many are ditching their current lender for a more competitive mortgage elsewhere. As a result, there’s intense competition in the home loan industry. Banks are hungry for your business and are offering all sorts of sweeteners to get you on board. Cashback offers. Rate discounts. Package deals. The whole shebang.
Who do you trust?
Despite all this competition and incentivising, there’s no one-size-fits all mortgage. Everyone’s financial situation and goals are different and banks are big companies; it’s hard not to feel like a number, no matter how unique their polished ads make you feel.
Your needs may well be similar to other bank customers’, but to you they feel unique, which is why you need a more tailored finance solution. So how do you know which home loan is most suited to you?
This is where a broker will feel like having your own banking professional. A mortgage broker is a trained finance specialist; they know the system and which products best suit their clients’ needs.
Home loan brokers like HoLo also know all the latest industry developments, so you gain access to a wealth of knowledge by working with them.
Finance tailored just for you
There are heaps of reasons people refinance, including:
To secure a more competitive interest rate
To make the most of possible interest-saving features like offset accounts or redraw facilities
To access equity for renovations, additional properties or other financial goals
To consolidate debt.
At HoLo, we find a loan product that’s appropriate for your specific needs. If we think you could benefit from loan features like an offset account or redraw facility, we’ll explain why. And because we are more independent than a bank, representing a much broader chunk of the market, we won’t push any extras on you that you don’t actually need, putting your needs before those of the banks.
It’s the right (amount of) choice
If you go directly to your current bank asking for a more competitive rate, you’ll only get the loans and rates that it can offer right now.
HoLo, on the other hand, has access to a full smorgasbord – a range of lenders with different types of products, features and benefits.
Plus, the commission HoLo receives from the banks we work with are fairly standard across the sector, which means there’s no particular incentive for brokers like us to recommend one bank over another. This means we are free to act in our clients’ best interests.
Make your life easier
Trying to understand all the different home loan products out there can be stressful and overwhelming. Mortgage brokers can take that burden out of refinancing.
HoLo will liaise with your chosen bank and facilitate the whole process. While nobody is likely to describe their home loan application process as ‘fun’, there’s no doubt that HoLo’s clients find the whole experience waaaay better than they expected. Check out HoLo’s customer stories and Google reviews to see.
The fixed-rate cliff
Unless you’ve been living under a rock for the last year or so, you’ll know that many Aussies reached the end of their fixed rate periods in 2023: 1 in 5 mortgage holders, to be precise. And the pain for households continued into 2024 with another group or mortgage holders hitting their cliff between March and May.
If you have a fixed rate deal coming to an end then it’s worth speaking to HoLo about your refinancing options. Your current bank’s variable rate may not be the most competitive or appropriate for your circumstances, so it’s important to get a second opinion.
Let’s chat
If you’re looking to refinance your home loan then it pays to get someone who understands the market, understands how mortgages work for individuals and takes the time to understand your financial situation and goals. Using a mortgage broker like HoLo is the smart way to achieve this.
Get in touch or set up a meeting with a HoLo expert to find out how your home loan compares to others and discover if switching banks is right for you.
If you’d like to know more, book an appointment or contact us.
Tags: