Is refinancing really worth it?

Is refinancing really worth it, an Australian perspective?

If you live in Australia and have purchased property in the last 10 years chances area that you still have a substantial home loan and or an investment property loan. Paying the loan week, fortnight or month after another can be a big expense. If you have a investment property loan then you may be fortunate enough to have a tenant to help pay for you loan payment, and the Government may contrubute a little through negative gearing (unless you have positive geared it then yay for you!). Either way money spent on interest and bank fees is not money in your pocket to spend on other things you need or want!

So what are you going to do about it? You could always refincnce your loans to a better deal. There is a bit of inconvenience to refinancing, new online banking look, new bank branch (if you use one) and you may need to reorganise your payments (though the lander may be able to organise some of your direct debits to be switched). But the rewards of refinancing could be substantial. With loan payments being one of if not the largest ongoing expenses a small percentage change in your interest rate could mean thousands of dollars in the long term, even without calculating the compounding interest (from puting saved money in an interest baring account or investing it elsewhere) from money saved. But maybe you dont want to save the money and prefer to spend it on lifestyle, refinancing could help you to do that.

But how are you going to find that home loan with the cheap interest rate, low fees and all the features that you want?

You could go back to the bank that you are currently with and ask them to reduce their rates. This can sometime lead to an embasising conversation with the bank saying no and you having to keep dealing with them until you get your refinance sorted. Even if they give you a better deal there could be and even better one out there. The best bet and one that more and more Australians are taking is to talk to a good mortgage broker about your refinacing options.

A good mortgage broker will get to understand your situation, objectives and how you want to manage your money. They will then analyse and compare as many different loans as possible and select those that suit your needs. 

If you need a good mortgage broker contact Oak Laurel

Melbourne Mortgage Broker Office

Oak Laurel

Notting Hill VIC 3168

0430 129 662

Canberra Mortgage Broker Office

Oak Laurel

Kaleen ACT 2617

0481 368 884

www.oaklaurel.com.au

info@oaklaure.com.au

 

 

Forigners now buying property in Australia

Forigners now buying property in Australia

There is now a trend in Australia that foreigners are buying property. The price of property in Australia continues to increase. The demand for housing much more than the supply. This is because of Australia high population growth and concentration of jobs in the Major capital cities, which is where the major increases in property prices is occurring. 

Recently Chinese people buying Australian real estate have been in the press. Some people have tried to blame foreigner Chinese paying more than them for a property. However, it has frequently been local Australians who are ethnic Chinese but are either immigrants or born in Australia. 

The drivers behind Chinese purchasing property in Australia include changes to domestice (Chinese) laws areound property ownership in China making property investment less attractive in China and the exchange rate which has made Australian property on sale for Chinese.

It has also been reported that the Chinese foreigner are not buying in the same market as first home buyers as they are often buying more expensive properties.   

Given that Australian is based on immigration and this trend does not appear to be stopping it is expected that housing will continue to grow in Australia. 

There are still some good areas to invest in Australian property including Melbourne suburbs of Maidstone (inner west Melbourne) and the Monash city area middle east Melbourne (Clayton, Glen Waverly and Notting Hill).

Some Australian lenders are also providing home loans tailored to immigrants, known as immigrant mortgages or immigrant home loans. Some Australian lenders are also providing temporary resident home loans. These are tailored to people on temporary visas such as work visas, study visas, spouse visas.

Due to the home loan market in Australia being diverse and disorganised local Australians, immigrants, temporary residents and foreign property investors are more and more often using a mortgage broker to help them arrange their home loans.

Resources

Property information was obtained from www.propertyinfo.info

Finance information was obtained from www.oaklaurel.com.au

Oak Laurel

Notting Hill VIC 3168

0430 129 662

www.oaklaurel.com.au

info@oaklaure.com.au

Oak Laurel

Kaleen ACT 2617

0481 368 884

www.oaklaurel.com.au

info@oaklaure.com.au