Why Should I Refinance?

If it aint broke, don’t fix it.

This is a good saying in a lot of situations, however with an existing home loan, this type of indifference could be costing you thousands! In the banking industry, most lenders are way more interested in attracting new business rather than keeping their existing clients. If you have been with your lender for more than a couple of years you are more than likely been a victim of “back book creep”. This is where your current and existing loan rate is considerably higher than the rates being offered to new lending. Have you ever seen an ad on TV and think “I’m with CBA, why isn’t my rate that low?”.

How do I combat this? 

You can speak to your present bank and see if they will drop your current rate, however it is highly unlikely that they’ll drop you to the ‘new money’ rates that are being advertised. So the best thing to do is speak to a member of TTO Finance where we can look at your refinance options across our network of 35+ lenders on our panel. We can also take this opportunity to ensure your loan is structured the best way, whilst also confirming the best Fixed vs Variable rates and conduct a thorough and general change on your lending. We will also have your loans reviewed by a qualified accountant to ensure your loan is structured in the most efficient way gaining all tax advantages available to you respectively.

Here are a couple of real world examples of success we have recently had with our clients:

Client 1 – Home Loan & Investment Loan – Variable

• Total Loan Amount $447,000 with Existing Facilities at 3.31{b8e7c7f951a33340f874b6d86f318d9ec4412e46b7f65591a459ed670b119c83}, 3.66{b8e7c7f951a33340f874b6d86f318d9ec4412e46b7f65591a459ed670b119c83} & 5.24{b8e7c7f951a33340f874b6d86f318d9ec4412e46b7f65591a459ed670b119c83}
• The new loan provided a total savings of $8,792 per year in interest

Client 2 – Home Loan & Investment Loan – Fixed

• Total Loan Amount $1.53m with Existing Facilities of 2.19{b8e7c7f951a33340f874b6d86f318d9ec4412e46b7f65591a459ed670b119c83} Fixed & 2.69{b8e7c7f951a33340f874b6d86f318d9ec4412e46b7f65591a459ed670b119c83} respectively
• The new loan provided a total savings $10,095 per year in interest

Client 3 – Commercial Loan

• Total Loan Amount $2.25m with Existing Facility at 3.86{b8e7c7f951a33340f874b6d86f318d9ec4412e46b7f65591a459ed670b119c83}
• The new loan provided a total savings of $15,592 per year in interest