Tag Archive: Refinance

To Switch or Not to Switch? That Is THE Question….

Refinancing your Home or Investment loan can bring down your monthly commitments and save you large amounts over the life of your loan.

Being ready for the switch is something that all owners should be preparing for preferably six months out at a minimum, but we know this is not always the case.

Investor rates have been increasing rapidly and those of us on fixed rate investor loans should be thinking ahead and preparing to go elsewhere when these terms expire.

To maximise your options and archive the best outcome it is important to make sure you:

  • Don’t miss any loan payments in the six months prior to switching
  • Pay down, cancel or clear any existing credit cards if you can
  • Avoid or plan to delay any major purchases where borrowed funds are necessary (cars or interest free purchases)
  • Make sure your council rates are up to date

We do not recommend switching if you have settled your loan within a 12 month period. This often raises questions with funders and may adversely affect your credit rating. We are happy to provide you with you and/or your partners rating. ‘AAA’ do the shopping for you. If you try multiple lenders, each time they will perform a credit check- each credit check performed will reduce your credit rating. Your credit rating forms part of the assessment process for your loan approval.

Here at ‘AAA’ we have investor friendly packages and far lower rates than the big four across a range of lenders for small business owners and salaried clients alike. Switching can be very easy with the right plan and guidance and very often there are additional perks on offer to borrowers with good history.

If you would like to discuss your plan for a switch and how to prepare in more detail please contact me any time.

 

Ollie Lum

Home Loan Specialist

Ph: 02 9299 1144

Mobile: 0422 164 377

Email: Ollie@aaamortgages.com.au