**Note: Due to the privacy of the clients in mention, their name and other traits to reveal their identity have not been disclosed.**
Prior to consulting a REIF Finance Specialist, the clients in mention held a portfolio of eight investment properties. The total value of their lending was $2 million and this was dispersed across a range of mortgage lenders. During their initial consultation with REIF, it was identified that their entire lending portfolio was 4.2% higher than the average rate of all loans combined. Furthermore, this was putting them behind with achieving their financial goals sooner.
After careful review and a holistic analysis of their situation was completed, REIF were able to delve into the financial situation of the clients to source them a suitable deal on their lending. Our Finance Specialist audited our panel of over 30 lenders to determine a result that would place the clients ahead with their finances.
The result
After refinancing their lending portfolio we were able to accomplish $17,000 in cashback incentives from their previous mortgage loan providers. In addition to this successful result, we were able to consolidate their lending and cut their interest rate to 2.6%, furthermore amassing the clients a substantial saving of $21,500 per year in lending.
The importance of refinancing
If you're paying off a mortgage loan, we highly recommend reviewing your mortgage lending every couple of years! Cash rates are constantly fluctuating, thus impacting lenders decisions on their interest rates.
Since November last year, lenders have been reducing their interest rates as a result of the significant reduction to the cash rate. A loan that you may have secured three or four years ago could indeed have an interest rate two to three times higher than what's being currently offered. Therefore, you could be paying thousands of dollars more towards interest each year.
When you think about the thousands that you're unnecessarily throwing away to lenders each year, you could instead be thinking about reviewing this situation to put that hard earned money towards something more beneficial.
Reasons to refinance your home
Consolidate debt
If you currently owe various lenders money for different loans that are currently against your name, refinancing allows you to consolidate your debts. What does this mean exactly?
Well, for starters, when you consolidate your debts into the one mortgage loan you could be saving thousands in interest charges. You can save on interest payment fees and take better control of your finances.
Fund renovations
Been thinking about upgrading your home through renovation projects?
The simple process of consulting a finance specialist to review your finances could allow you to explore whether there's extra value in your property to be used as renovation funds.
Loan features
Whether you choose to go variable or fixed with your interest rate, each come with their own benefits and features. It's important to have an understanding of the different features for your rate to help you make a calculated decision on which loan option is most suited to your circumstances.
REIF are here to help
If you're looking to achieve similar results to the client in mention, a REIF Finance Specialist is here to help! We're servicing a range of different clients with different circumstances right across the country. We take a holistic and client centric approach to understanding your individualised set of circumstances. Feel free to reach out on the details provided below for more information.
Ph: 1300 130 932
