5 reasons to think about refinancing your home loan this year
Refinancing your home could help you cut borrowing costs and unlock a range of loan features.
Sponsored by P&N Bank. If you're thinking about refinancing, P&N Bank offers a range of home loans with flexible options that may suit your needs. Get started today at P&N Bank's website.
Interest rates have just gone up again, after moves by the Reserve Bank of Australia.
So there are a growing number of Aussie homeowners who are reviewing whether their current loan is still right for them.
But it's important to have the right lender support, too. So today, we're taking a look at some of the benefits that refinancing with P&N Bank can offer.
1. Interest rate options
One of the most common reasons that people opt to refinance their home loan is to reduce their interest rate.
This is because interest rates directly affect the repayment amount over the lifetime of a loan.
You can check the interest rates that P&N Bank is offering on both fixed and variable home loans on the P&N Bank website.
You can use their home loan calculator to determine how much you could save on your on your repayments with a new interest rate.
2. Lower fees and charges
When you sign up for any new home loan, it's important to take a close look at the fees and charges attached to it.
These can add a considerable expense to the loan. So refinancing can help reduce these costs.
For example, P&N Bank's fixed and variable home loans don't charge any monthly maintenance fees.
That can translate into significant savings over the course of the loan.
P&N Bank Variable Home Loan
The P&N Bank Basic Variable Home Loan offers a competitive rate and flexible features to suit a variety of needs.
- Competitive variable interest rate for owner-occupiers
- No ongoing monthly or annual fees or charges
- Flexible repayment options – weekly, fortnightly, or monthly
- Make extra repayments without penalty
- Redraw any extra repayments online if you're ahead.
3. Ability to choose between fixed and variable
P&N Bank offers both fixed and variable home loans.
Let's take a closer squiz at what this means.
A fixed home loan means that you're able to lock in your interest rate. This lasts for a pre-determined period of time; usually 1-5 years.
The loan will generally have fewer features, but it does mean that you have predictability around your repayments.
Fixed rates protect you from interest rate increases during the fixed term; however, you will not benefit from any reductions in interest rates over that period.
By contrast, a variable home loan has a variable interest rate. Although they usually shift in line with RBA cash rate changes, they can also move at any time.
If the interest rate goes up, so do your repayments. But if they go down, your repayments drop too.
They also tend to have a wider range of loan features, which can also help you get the loan paid off sooner.
Neither is "correct"; they both have different features that suit different circumstances.
So, it's worth speaking to a professional before deciding on either.
P&N Bank Fixed Rate Home Loan
With the P&N Fixed Rate Home Loan, you can lock in your interest rate and access a range of home loan features.
- Fixed interest rate
- Borrow up to 95% of the property value* for owner occupied purpose
- Choose to repay weekly, fortnightly, or monthly.
- Make extra payments up to $25,000 without penalty during the fixed rate period
- Flexible options to split your home loan. Fix a portion of your loan and pay variable rates on the rest
4. Access to redraw
Sometimes, it's necessary to free up some funds.
If you've made extra repayments on the loan you can redraw them if you need extra money. So instead of taking out a separate, new loan, it can be more time and cost-effective to simply redraw from your home loan
If you have a variable home loan with P&N Bank, you're able to use redraw.
You can learn more about using redraw by speaking to a team member from P&N Bank.
5. Get your home loan paid off sooner
One of the potential benefits of refinancing is the opportunity to restructure your home loan in a way that may help you pay it off more efficiently over time.
Features such as the ability to make additional repayments can assist in reducing the overall cost and length of the loan.
A P&N Bank fixed home loan allows you to make repayments of up to $25,000 during the fixed rate period.
A P&N Bank variable home loan allows you to make unlimited additional repayments without penalty.
Learn more about refinancing with P&N Bank
Sponsored by P&N Bank. If you're thinking about refinancing, P&N Bank offers a range of home loans with flexible options that may suit your needs. Get started today at P&N Bank's website.
Banking and credit products are issued by Police & Nurses Limited (P&N Bank) ABN 69 087 651 876 AFSL and Australian Credit Licence 240701.
Any advice provided does not take into account your objectives, financial situation or needs. You should read the relevant Product Terms and Conditions before acquiring any product and consider whether it is right for you.
Target Market Determinations (TMDs) are available on our website or upon request.
*If you are borrowing more than 80% of the property's value (Loan to Value Ratio), Lenders Mortgage Insurance (LMI) may be required. Borrowing up to 95% includes LMI costs.
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