For many Australian homeowners, the idea of refinancing often takes a backseat until market conditions become too appealing to ignore. If you’ve been contemplating whether to take the plunge, here’s some food for thought on why now is the golden opportunity.
- Recent Decisions by the RBA: This month, the Reserve Bank of Australia (RBA) chose to hold the cash rate at 4.1%. This marks the third consecutive month the Bank has opted to maintain the rate, observing positive signs in inflationary data. If you hold a home loan, you’ve probably either seen your repayments rise or are bracing for an increase when your fixed-rate term ends. This scenario has prompted a significant uptick in refinancing across the country, as homeowners search for relief.
- Competitive Lending Market: There’s never been a more competitive time in the Australian mortgage industry. Lenders are vying for your business, which means better deals, incentives, and packages for borrowers.
- Home Values on the Rise: The recent Home Value Index indicated a promising upward trend in the housing market as national home values surged by 0.8% in August 2023. The recovery’s momentum is evident across the board, with every capital city registering an increase in dwelling values. Refinancing during this time offers homeowners the chance to leverage their home’s enhanced equity.
- Personal Financial Flexibility: Refinancing can allow you to adjust your loan terms. Whether it’s to pay off your mortgage sooner, reduce monthly payments, or switch from a variable to a fixed rate, now is an opportune moment to make that shift tailored to your financial needs.
- Improved Lending Criteria: Over the past years, lending criteria have undergone revisions, making it more transparent and user-friendly. If you previously faced barriers, it’s worth checking again, as the landscape has evolved.
Your Next Steps: At Grow Capital, we have witnessed the ebb and flow of the market. So, if you’re considering refinancing, my advice is to seize the moment. Reach out today, and let’s explore the best options tailored for you.
Whether you’re keen to save on your monthly repayments, tap into equity, or restructure your loan for the future, I’m here to guide you every step of the way.