Tag Archive for: rates reduction

You are here: / / rates reduction

Posts

What to Do if You’re Hit by the Mortgage Cliff

The mortgage cliff is a situation where homeowners’ monthly mortgage payments suddenly increase significantly when their fixed-rate loan term expires. This can happen when interest rates have risen since the loan was taken out. The sudden increase in payments can put a strain on homeowners’ budgets and lead to financial hardship.

If you’re facing the mortgage cliff, there are a few things you can do to get relief:

  1. Talk to your lender. Your lender may be willing to work with you to lower your monthly payments. They may be able to offer you a lower interest rate, a longer loan term, or a payment holiday. If you are in real trouble do to an event like unemployment or sickness, you can apply for “Hardship” where you can stop or reduce payments for a period of time without it neccessarily effecting you credit report.
  2. Refinance your loan. If your lender is not willing to work with you, you may be able to refinance your loan to a lower interest rate. This can save you money on your monthly payments, but it may also involve closing costs.
  3. Make extra payments on your loan. If you can afford to, make extra payments on your loan each month. This will help you pay down your debt faster and reduce your monthly payments.
  4. Consider selling your home. If you can’t afford the higher payments, you may need to sell your home. This is a drastic step, but it may be the only way to avoid financial hardship.
What to Do if You’re Hit by the Mortgage Cliff

What to Do if You’re Hit by the Mortgage Cliff

If you’re facing the mortgage cliff, don’t panic. There are options available to help you get relief. Talk to your lender and explore all of your options.

Here are some additional tips for getting through the mortgage cliff:

  • Create a budget. This will help you track your income and expenses so you can see where your money is going.
  • Cut back on expenses. Look for ways to reduce your spending, such as eating out less or canceling unused subscriptions.
  • Get a second job. If you can, get a part-time job to bring in more income.
  • Seek financial help. There are government programs and non-profit organizations that can help homeowners who are struggling to make their mortgage payments.

The mortgage cliff can be a stressful situation, but it’s important to remember that you’re not alone. There are people who can help you get through it.

For a free assessment with your Origin Finance broker call 1300 30 67 67 or fill in the enquiry form on this page.

How to get yourself out of mortgage prison

Refinance now to get out of Mortgage Prison
Refinance now to get out of Mortgage Prison

Think you’re the only one going through mortgage pain?  Well you’re not.

Think you have to grin and bear it?  Maybe you don’t

About 16 per cent of households with a home loan are in “mortgage prison”, unable to refinance to a lower rate because they do not meet banks’ tough serviceability assessment rules, the Reserve Bank of Australia has revealed.

The RBA’s semi-annual review of financial stability says rising interest rates mean an increasing number of existing borrowers cannot pass a bank serviceability assessment, which tests a person’s ability to cope with a three percentage point increase in interest rates.

It means hundreds of thousands of households are stuck with their existing lender and unable to directly reap the benefits of strong competition in the refinancing market, with banks offering discounted interest rates and $4,000 cashbacks.

However, this research does not consider the relief that non-bank lenders can provide to those in mortgage stress – these lenders are not legally required to apply the serviceability buffer tests.  And non-bank lenders still offer competitive rates.

Non-bank lenders cover about 10 per cent of the market and often only go through brokers.

If you want to learn more about how to get finance with non-bank lenders, contact your Origin broker.

And, if all else fails, you can still talk to your existing bank about getting them to drop their rates.  As the central bank said, about one-third of borrowers who are unable to refinance have managed to renegotiate their interest rate with their current lender.

Call Origin Now on 1300 30 67 67 or fill in the form on this page to find out what your options may be.

Reduce your interest rate and get up to $4000

SAVE MONEY BY REFINANCING
SAVE MONEY BY REFINANCING

Refinancing your mortgage can be a great way to save money on interest payments and potentially reduce your monthly repayments. In Australia, there are many lenders who offer competitive rates and incentives to refinance your mortgage. How can you can refinance your mortgage in Australia and get a massive interest reduction and up to $4000 refinancing payment? Read on.

  1. Shop around for the best deal

The first step to refinancing your mortgage in Australia is to shop around for the best deal. There are many lenders in Australia who offer different rates and incentives, so it’s important to compare them to find the one that suits your needs. You can use online comparison tools to compare different mortgage offers and choose the one that offers the best value or call you Origin broker to do it for you!

  1. Calculate your savings

Once you have found the lender with the best offer, it’s important to calculate your potential savings. You can use online mortgage calculators to compare your current mortgage with the new offer and see how much you could save in interest payments. It’s also important to consider any fees associated with refinancing your mortgage, such as exit fees from your current lender and application fees from the new lender.

  1. Apply for the refinancing

Once you have decided to refinance your mortgage, you can apply for the new loan with the new lender. The application process usually involves providing information about your income, employment status, and credit history. The new lender will also conduct a valuation of your property to determine its value and the amount of equity you have in it.

  1. Pay off your existing mortgage

Once your new loan is approved, you will need to pay off your existing mortgage with the funds from the new loan. This process is usually handled by the new lender and involves paying off your old loan and transferring the title of your property to the new lender.

  1. Enjoy the benefits of refinancing

Once your new loan is in place, you can start enjoying the benefits of refinancing. These benefits can include a lower interest rate, lower monthly repayments, and potentially significant savings over the life of your mortgage. Some lenders also offer cash incentives for refinancing, which can be a great way to offset any costs associated with the process.

Refinancing your mortgage in Australia can be a great way to save money on interest payments and potentially reduce your monthly repayments. By shopping around for the best deal, calculating your savings, applying for the refinancing, paying off your existing mortgage, and enjoying the benefits of refinancing, you can take advantage of the competitive mortgage market in Australia and potentially save thousands of dollars.

Call Origin Now on 1300 30 67 67 or fill in the form on this page to see what your options can be.

Doug Daniell – CEO – Origin Finance

What to do when your low fixed rate home loan is maturing

As a home loan borrower, you may have taken advantage of cheap fixed home loan rates in Australia. However, when your fixed term ends, your loan will automatically switch to a variable rate. This change can impact your monthly payment, and it’s important to understand what to expect.

Fixed home loans in Australia are usually offered for a period of 1-5 years. During this time, your interest rate is fixed, meaning your monthly payment remains the same. This can be beneficial if you want to budget your expenses and protect yourself against interest rate hikes.

However, once your fixed term ends, your loan will automatically switch to a variable rate. This means your interest rate and monthly payment can change depending on market conditions.

The change in monthly payment can be significant, especially if you initially took out a fixed-rate loan with a low-interest rate. For example, if you have a $500,000 home loan with a fixed rate of 2% for 2 years, your monthly payment would be $2,148. Once the fixed term ends, your loan might switch to a variable rate of 6%, increasing your monthly payment to $2,998. This is an increase of $850 per month, or $10,200 per year.

To prepare for the change in monthly payment, it’s important to understand your options. Here are some steps you can take:

  1. Review your loan terms: Before your fixed term ends, review your loan terms to understand when the change will occur and what your new interest rate and monthly payment will be.
  2. Budget for the change: Once you know the new interest rate and monthly payment, adjust your budget to accommodate the increase. You may need to cut back on other expenses or find ways to increase your income to cover the additional cost.
  3. Consider refinancing: If the increase in monthly payment is significant, you may want to consider refinancing your home loan. Refinancing can help you secure a better interest rate and lower your monthly payment.
  4. Talk to your mortgage broker: If you’re struggling to make the new payment or are concerned about the impact of interest rate rises on your loan, talk to your mortgage broker. They can help you understand your options and work with you to find a solution that meets your needs.

A mortgage broker can also help you shop around for a better deal on your home loan. They have access to a wide range of lenders and can help you find a loan that suits your needs and budget. By working with a mortgage broker, you can be confident that you’re getting the best deal possible on your home loan.

In conclusion, the change in monthly payment when your fixed home loan matures in Australia can be significant, especially if your interest rate increases from 2% to 6%. It’s important to understand your options and plan accordingly to avoid financial stress. By reviewing your loan terms, budgeting for the change, considering refinancing, and talking to your mortgage broker, you can make the transition to a variable rate as smooth as possible.

Doug Daniell

CEO Origin Finance

Mortgage Rate Increase – Need a Break ? Contact your Broker Now!

Rates Concerning you? Call your broker to get a Rate Reduction

If you’re a homeowner with a mortgage, you know how important it is to stay on top of your payments and make sure you’re getting the best deal possible. Interest rates can play a significant role in the cost of your mortgage, and a high interest rate can end up costing you thousands of dollars over the life of your loan.

Fortunately, there’s a way to reduce the interest rate on your home loan and potentially save yourself thousands of dollars in the process. By calling your mortgage broker, you can take advantage of their expertise and access to a wide range of lenders to find a better rate that suits your needs.

Why Call Your Mortgage Broker?

Mortgage brokers are licensed professionals who specialize in helping people find the best mortgage rates and loan terms for their specific needs. They work with a variety of lenders and financial institutions to find the best deals for their clients and can help you save money on your mortgage in a number of ways.

Here are a few reasons why you should call your mortgage broker to help reduce the interest rate on your home loan:

  1. They can negotiate on your behalf: Mortgage brokers have established relationships with lenders and can negotiate on your behalf to secure a lower interest rate. They know the ins and outs of the industry and can help you navigate the complex mortgage market to find the best deal for your unique situation.
  2. They have access to a wider range of lenders: Mortgage brokers work with a wide range of lenders, including banks, credit unions, and other financial institutions. This means they have access to a larger pool of mortgage products and can find you a better rate than you might be able to find on your own.
  3. They can help you refinance: If you’re already locked into a high-interest mortgage, your mortgage broker can help you refinance to a lower rate. This can save you a significant amount of money over the life of your loan and help you pay off your mortgage faster.

How to Get Started

If you’re ready to reduce the interest rate on your home loan, the first step is to call your mortgage broker. They can help you understand your options and guide you through the process of finding a better rate.

Here are a few tips to keep in mind as you get started:

  1. Gather your documentation: Your mortgage broker will need to see your current mortgage statement, credit report, and income documentation to help you find a better rate. Make sure you have all of this information on hand before you call.
  2. Be clear about your goals: Let your mortgage broker know what your goals are for reducing your interest rate. Are you looking to save money on your monthly payments, or do you want to pay off your mortgage faster? Be clear about what you’re looking to achieve so your mortgage broker can help you find the best deal.
  3. Ask questions: Don’t be afraid to ask questions or clarify anything you don’t understand. Your mortgage broker is there to help you, so make sure you’re comfortable with the process and understand your options.

Conclusion

Reducing the interest rate on your home loan can be a great way to save money and pay off your mortgage faster. By calling your mortgage broker, you can take advantage of their expertise and access to a wide range of lenders to find the best deal for your unique situation.

If you’re ready to start saving money on your mortgage, call your mortgage broker today and see how they can help you reduce your interest rate.

Call Origin Now on 1300 30 67 67 or fill in the form on this page to save your money and sanity!

Doug Daniell – CEO – Origin Finance

At Origin Finance, We Put You First

Origin Finance is one of Australia’s most respected mortgage brokers. We provide our clients with access to a large panel of lenders with an extensive range of home loan products. Many of these lenders are well-known banks, many others are household names who only lend through brokers; others still are specialist lenders who can meet diverse financial circumstances. Origin helps you make the right home or investment loan choice. Call us today 1300 30 67 67.

MFAA LogoOrigin Finance is a
Credit Representative (No. 397786) of
BLSSA Pty Ltd ABN 69 117 651 760,
Australian Credit License 391237