1. Interest rates are the lowest they have ever been. It would seem that the ‘only way is up’ from here on!
2. Lender refinance rebate offers mean lenders will pay $2,000 or more to move. But they are available for a limited time only.
3. Fixed rates have started rising, and may never be this low again!
Note – This is due to the end of the $200B term funding facility that the government provided to lenders and the government will stop buying bonds to keep the 3 year bond yield under 0.1%, which will put upwards pressure on 3 year fixed rates.
4. Get in before access to finance becomes more difficult, as pressure builds for APRA intervention to curb runaway property prices.
5. Move to a lower monthly repayment to improve your cash flow.
6. Ensure that you are making the most of offset accounts and have an effective money management system.
7. Take advantage of the strong market, whilst house prices and valuations are higher, to access equity to:
- invest and grow your wealth; and/or
- increase your cash buffer to manage risk.
8. There are fewer supporting documents required than ever before when refinancing, due to credit reporting changes.
9. Consolidate debt to make your repayments lower.
Note – Even if you’re on a fixed rate with your existing lender, the break and refinance cost may be covered by a refinance rebate and get you onto a lower interest rate.
10. Receive strategic advice regarding your mortgage strategy in case you are not optimising your tax deductions or your ability to hold property into the future.
11. Develop a plan for buying a property.
12. Review your loan type (variable v fixed) and repayment strategy (P&I v I/O).