Lifestyle 2017-02-22T23:40:30+00:00

Loans for Lifestyle

A home loan is generally a long-term proposition, but in some situations it can make sense to refinance your mortgage, or consider making adjustments to your loans to adjust to your everchanging lifestyle.

REFINANCING
REVERSE MORTGAGE

REFINANCING YOUR LOAN

30 years is a long time.  Situations change.  Perhaps you’ve changed employment? Or there’s a new addition to the family? Or simply want to reduce your rate? Or wanting to give that tired kitchen an overhaul? All of these can mean that you are due for a home finance health check with a RateOne broker.

The banks make an assessment on your mortgage based on your circumstances today.  The bank cannot and is not expected to adjust your loan the changes to your lifestyle over these 30 years.  Therefore, when your circumstances change, it would make sense to also revisiting your mortgage to see if it is still the most suitable option for you.

For many, the idea of refinancing a mortgage can be discouraging.  Fees, rates, interest rate types, repayment types must be taken into consideration.  The right refinance, coupled with repayment strategy can help you reduce your mortgage faster potentially saving you interest charges along the way.

When refinancing, your RateOne broker will identify opportunities to consolidate debt as well, potentially reducing your overall number of repayments per month to a single mortgage repayment.

REVERSE MORTGAGES

A reverse mortgage allows you to borrow money using the equity in your home as security. The loan may be taken as a lump sum, an income stream, a line of credit or a combination of these options. Interest is charged like any other loan, but you usually don’t need to make repayments while you live in your home. The loan must be repaid in full if you sell your home or die or, in most cases, if you move into aged care. Typically, you are charged a higher interest rate on a reverse mortgage than for a standard home loan.

  • Supplement your income

  • Access additional funds without limiting your lifestyle or selling your home.

  • Defer repayments until you no longer live in the home. Interest, fees and charges will accumulate until the loan is repaid.

  • Flexible payment options

More information can be found on: Reverse Mortgage Key Information Sheet

HOW IS THE INTEREST CHARGED?

You will be charged interest on the loan amount you borrow. Fees and interest are added to the loan balance as you go, and the interest compounds. This means you will pay interest on your interest, plus on any fees or charges added to the loan. Over time, the amount you owe the lender will increase, and the longer you have the loan, the more the interest compounds and the bigger the amount you will have to repay.