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You and your home loan have had a pretty good run. It’s been with you through leaky roofs and loud neighbours. But maybe your eye has been wandering. You’ve seen other home loan rates and wondered how happy you really are.

After all, you know what they say: a change is as good as a holiday. Sure, a new home loan rate isn’t quite the south of France, but it could mean you get there sooner.

Refinancing your home loan can be a great way to save on your mortgage repayment. A lower rate can mean a lighter load on your monthly budget. Plus, home loan products may have changed since you first committed, so you might find a product with features that better suit you.

Sounds good, doesn’t it? Here’s what you need to do.

Cut back non-home loan debt

Your bank will want to see that you can comfortably meet the new repayments on your refinanced home loan. Aiming to cut back credit card debt or personal loan balances will free up income to help you manage the refinanced loan. Remember, banks take into account the LIMIT of your credit cards, store cards and interest free accounts; not just your balance!

Know how much you can comfortably repay

In many cases, refinancing will mean taking on a larger loan, and your bank will want to be sure you can comfortably manage the repayments. A Refinance Calculator can show you the likely repayments for a variety of loan sizes, rates and terms. Start with what makes you comfortable and you’ll get a better idea of how much you should apply to borrow.

Get your home ready for valuation

Your lender may want to have your home valued prior to refinancing your home loan. If this is the case, treat the valuation a bit like an open inspection. Put your best foot forward. Finish those repair jobs you’ve been ‘working on’. Give the place a fresh coat of paint and fill the garden beds with colour. The better the valuation, the more flexibility you’ll likely have when it comes to your loan.

Know why you want to refinance your home loan

Make sure you’re really clear about your motivation for refinancing your home loan. Many home owners use refinancing to fund renovations or the purchase of a new car, but whatever the reason, your bank will be keen to discuss whether refinancing your home loan is the best strategy for your needs.

In some cases, it may not be a suitable choice. For example, if you are refinancing to secure funds for business purposes, your lender could recommend a commercial loan. Or, you might find your bank would prefer you not use a mortgage to buy a wax model of Bradley Cooper.

Take the opportunity to explore new options

Home loan refinance options are plentiful. Refinancing your home loan is the ideal opportunity to take stock of your current loan, to see what’s available with other lenders and to weigh up different types of loans and their features. Circumstances change over the time and the loan you chose when you purchased your home may no longer be the best fit for your lifestyle.

Whatever the reason you’re looking at refinancing your home loan, there are choices available.. See how much you could be saving and let an Element Finance broker find the right option for you.

The Reserve Bank of Australia (RBA) has announced an increase to their cash rate. So, it’s a good idea to plan for a higher rate environment and think of ways you can lessen any impacts on your budget. To help you make the most of the situation, we’ve put together this guide that includes an overview of rate rises and ways you can prepare.

 

What are rate rises, and what do they mean for you?

The RBA sets cash rates to sustain inflation. These rates are increased to curb spending and lowered to stimulate spending. Currently, economists forecast that there could be multiple rate increases over the coming years beyond this initial rise, given the last increase was in 2010.

But what does this mean for you? Essentially, the interest on your loans is likely to go up. But there are ways you can plan for this and reduce the impact of rises on your goals and lifestyle. To start, you should visit a repayment calculator and run some numbers to see how an interest rate increase will change your loan and whether you need to adjust your budget.

 

Review your budget

Speaking of budgets, you should review what you have in place! And if you don’t have one, now is a good time to start. Review your monthly surplus. Can you make higher repayments or cut out some costs? Running through these scenarios will help you stay on top of your finances.

 

Look into additional repayments

Making additional repayments is a great way to reduce your home loan if your budget allows. The more you reduce your principal, the less time it may take to pay off your home loan. To understand what additional repayments can do for you, check out an additional repayments calculator.

 

Look into a fixed loan  

A fixed rate home loan gives you the comfort of knowing what your repayments will be over a specific period, making your goals and plans more manageable. One thing to be aware of is the end date of your fixed loan and any potential increase in interest based on the economic conditions at that time.

If you are looking to move to a fixed rate, you can do so with confidence by locking in an interest rate with a rate lock service. For example, our rate lock is applicable for up to 100 days from the request date, so that you can protect yourself from any potential rate increases.

 

Or try a split loan

Want the best of both worlds? Why not split your loan into a variable and fixed portion. You’ll get the security of a fixed rate for a part of your loan and all the benefits and flexibility of a variable rate for the other portion.

 

Make the most of flexible features

Offset accounts are a solid option if you’re looking for some flexibility. Every dollar you keep in your offset account reduces the interest you’ll have to pay on your linked home loan. This has the benefit of allowing you to use your offset funds when you need them.

Remember, Element Finance is here to help. You can call or message us today to understand the options available to you.

Please welcome Matt Lyons to Element Finance Joondalup!

Matt has recently joined Element Finance Joondalup bringing with him 9 years of experience garnered from two large banks and a small Perth broker. More recently, Matt has built several houses and knows first hand the hurdles a home buyer or investor can experience, and he has the ability to break down this process into simple concepts that make the whole process easy to understand.

After migrating here from England with his parents back in 1993, Matt has adapted to the Australian way of life and enjoys finance, property and investment. It was during his time at The Banks he realised he enjoyed discussing property and creating relationships to deliver a product for the Client that they both understand and meets their needs.

We are really excited Matt has chosen to join us. If you or any of your friends or family would like to chat with Matt to see how he can help improve your situation, you can contact him directly on matt@elementfinance.com.au or 0401 089 524

This article was originally published here and although a couple of years old, most information is still valid.

Northern Perth’s Joondalup region is adjusting to the moderating market of the city.

The northern beaches Joondalup region includes Burns Beach, Edgewater, Joondalup, Connolly, Heathridge, Kinross, Currambine, Iluka and Ocean Reef. The suburb of Joondalup itself acts as a hub to Perth’s outer northern suburbs.

The push to establish Joondalup as an urban centre extends back to 1970, with the Corridor Plan for Perth. A number of retail and transport infrastructure initiatives have been implemented around the area in the past 40 years to facilitate urban development and direct activity to Joondalup. Joondalup was highlighted in the West Australian state government’s Directions 2031 strategy as one of two primary centres in the Perth metropolitan area, along with Rockingham.

The area’s CBD has a strong retail focus and has seen considerable residential development in recent years, with a relatively high density of townhouses and apartments. With the presence of Edith Cowan University, a healthy retail and entertainment district, established parks and in close proximity to the beach and Lake Joondalup, the area has attracted demand from the middle class lifestyle market.

The greater region of Joondalup had a median house price of $588,750 in March, while units in the area sold for a median price of $415,000. A two bedroom Joondalup apartment in the block pictured below sold for $408,000 in February.

According to Australian Property Monitors senior economist Andrew Wilson, Joondalup’s appeal to middle income earners has lent the area some resilience against the changes seen in Perth’s market.

“Joondalup is in the middle price range area,” said Wilson.

“There’s a bit of a lifestyle market there. With all the new developments that have been established in that area, we’re seeing middle price bracket, executive type buyers.

“Because of that nature of the market, it tends to be quite resilient. The big picture is that Perth is moderating. The latest data shows that Perth’s market has plateaued.

“We’re seeing quite a significant upward shift in unemployment in Perth, which has moderated lately.”

According to data from the Real Estate Institute of Western Australia, listings in Joondalup and the neighbouring Wanneroo jumped earlier this year, up 28% in the March quarter from December.

Despite Joondalup’s relative strength, its property market must still deal with exposure to Perth’s labour market, said Wilson.

“The Perth labour market has seen some difficulties with absorbing eastern state migration, which saw rents get pushed up quite sharply in some suburbs of Perth. Perth prices rose 10% last year, and with rising unemployment, we’re starting to see some affordability issues.

“And the lifestyle market can certainly be affected by job security and affordability issues. But as the economy does pick up and absorb that unemployment, incomes will grow.”

The slowing mining sector in Western Australia has seen a shift in focus for the region, with the city of Joondalup launching new initiatives to market the region as Perth’s “knowledge capital”. How well the region responds to the state’s shifting economy remains to be seen, but strong infrastructure investment in the area in the past and extending into the future ensures that it will remain a significant urban centre for Perth’s northern corridor.

Photo courtesy of Wikipedia/Creative Commons.

If you are considering buying an investment property in the Joondalup area, research should be very important to you. We have a lot of home loan and property tools available for our clients looking for their next property purchase. Some of these tools are not available to the general public. Just one small way mortgage brokers beat bank branches for investors 100% of the time.

There is still also some great data readily available to everyone via REIWA and the property websites, like the link below. Keep in touch with Element Finance Joondalup via our Facebook page where we will release some of our private tools soon.

http://www.realestate.com.au/invest/house-in-joondalup,+wa+6027


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Copyright 2016