The information contained in this article is of a general nature only. It doesn’t take account of any person’s objectives, financial situation or needs. Before acting on this information, you should consider whether it is appropriate for your circumstances and seek independent legal, financial, and taxation advice.
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How much can I save by refinancing?
We all know that sinking feeling at the supermarket checkout; watching the dollars climb and realising you’re going to have to put back some of the more expensive (and delicious) items from the trolley. Or, the crushing disappointment of getting a busted hot water system just as you were about to upgrade to that 65” Smart TV.
These struggles are real, but they’re not out of your control. In fact, refinancing could be a great way to get some extra cash flow to boost your daily spending allowances… or to pay for that holiday the kids have been begging you for.
Recently we found that an alarming 82% of Australians* don’t know what their current mortgage rate is, even though knowing your interest rate and keeping your eye on competitive rates is key to living your best life – and could save you some money.
Sticking your head in the sand when it comes to personal finances means you could be missing out on some great saving opportunities. We’ve identified a bunch of ways refinancing can help you become a savvy (and satisfied) saver.
Increase your budget to enjoy the now
There’s a number of avenues to go down when it comes to refinancing, and switching to a lower interest rate can result in a tangible benefit (less repayment amount = more money in pocket amount) you’ll feel right away.
Switching to a lower interest rate could make big improvements to your daily life. It could increase your weekly, fortnightly or monthly cash flow, potentially saving you hundreds of dollars a month… and also saving face at the checkout counter as you smugly walk away with your selection of gourmet cheese.
To find out how much you could save with a lower rate, try our comparison calculator.
Refinancing to pay for that big ticket item
By consolidating your debt into one account you’re simplifying your monthly repayments, which could help with your savings goal in the long-run. If you only have to worry about one monthly repayment coming out of your account, you could be freeing up time and headspace to think about different ways to achieve your savings goals.
Freeing yourself from debt, sooner
Perhaps you’re more focused on the end game – that is, ending your home loan repayments once and for all. It does depend on the terms and conditions of your current home loan or whether or not you’re thinking of switching to a new lender and potentially resetting the term on your loan. But paying off your home loan sooner is definitely an option for some people, and refinancing can give you the opportunity to reassess and reset your repayment goals. Financial freedom, we’re coming for you.
So, what are you waiting for? Whether it’s short-term or long-term savings you’re after, refinancing is a great solution to regain confidence in your money matters, so you can save, or spend, for those moments that matter most.
* UBank Know Your Numbers Index data conducted and compiled by Galaxy Research of 1,015 Australians in February 2018.
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UHomeLoan info: Credit is provided by AFSH Nominees Pty Ltd Australian Credit Licence 391192. UBank is the mortgage manager for UHomeLoan products. Govt charges may apply. The comparison rate is based on a secured loan of $150,000 over the term of 25 years. ^WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.