Adam Empringham,
Director of Sales at Image Property.
Money, money, money! Another benefit of reviewing your home loan
[lwptoc]Reviewing your home loan (including investment loans) might seem arduous, but there are significant perks to doing so – it can save you considerable money and increase your borrowing power.
Although interest rates are on the move, what you may not know is that the lending market is heating up! Many lenders incentivise homeowners/landlords to refinance away from their existing lender and move to them by offering to refinance rebates or “cashbacks”, anywhere between $2,000-$4,000 per refinancing by simply moving from your existing lender to a new one.
How do I receive a rebate?
To receive a rebate, as the name reads, you need to refinance your existing mortgage loan/s to a new lender. With the assistance of our finance partner Inovayt Finance, they will be able to facilitate this process by ensuring the process from lodgement to settlement is seamless and efficient.
When will I receive my rebate?
As part of applying for a finance application, the incoming/new lender will set up a new transaction account or offset account. Once your refinance application has settled, the lender will credit the rebate amount into your newly created account within six weeks of settlement. This varies from lender to lender.
Are there fees associated with refinancing?
There are standard fees that are applicable with refinancing. These include:
Deregistration fee: $209 (est. and different from state to state)
Reregistration fee: $209 (est. and different from state to state)
Discharge fee: $350 (est. and is different from lender to lender)
Application fee: $395 (est. and is dependent on the lender selected)
Total: $1,163 (est), meaning if you were to refinance to a lender offering a refinance rebate of $2,000 (minimum rebate amount), you could pocket $837 for one refinance application. If you have multiple properties, that figure can double ($1,674), triple ($2,511), or even quintuple ($3,348). How good!
It’s important to note that these fees are absorbed as part of the refinanced loan, not paid out of pocket.
If you haven’t reviewed your finances recently, now is an excellent time to take advantage of these incentives that are available to you.
Click here to book a free no obligation meeting with our finance partner Inovayt Finance.
