Refinancing

Sometimes getting a better rate from your current lender is as simple as asking. Although, requests seem to go down a little better when a broker does the asking! The more equity you have in your property, the higher your chance of negotiating a better rate.

Debt is a perfectly normal part of life. However, if not managed, the sky-high rates charged on credit cards and some personal loans can create financial stress.

If you have a mortgage, you may be able to use equity in your property to absorb multiple debts into your home loan. You’ll then continue with one easy repayment at a much lower interest rate than charged on credit cards.

Lenders compete for business using lower rates and special loan features. That means if you’re not satisfied with what your current lender is offering, there are usually other options available.

Exiting a fixed-rate term early may incur breaking fees. It’s important to discuss with a mortgage broker whether or not the long-term benefit of lower repayments will outweigh the cost of breaking the loan.

Refinancing may also allow you to reduce your loan term, and choose additional features not included in your current loan, such as flexible repayments, redraw facilities or loan splitting.

If you’re having difficulty making your repayments, there are a number of ways a Nectar broker could help.

• Changing repayments from Principal and Interest to Interest-only.
• Offsetting payments.
• If your loan has a redraw feature, you may be able to withdraw extra repayments you’ve previously made against the loan.
• In extreme circumstances, a broker can request that your lender pause repayments for a period.