Stuck in a bad debt cycle? A mortgage refinance with Positive Solutions Finance can help free you from the mess and get your finances back under control
Your Mortgage Refinancing Experts in Perth
Is your current mortgage still meeting your needs? Thinking of getting a line of credit for planned house renovations, to consolidate debts, or wanting to release some equity? Whatever your plans are, Positive Solutions Finance is here to help. With positive relationships with multiple lenders across Perth and Western Australia, we can assess your situation and find the best mortgage refinance loan for you.
Refinancing your mortgage may result in lower fees, a lower interest rate and better features such as a flexible repayment schedule and offset account. It is the process of paying off an existing mortgage by creating a new one. You can switch lenders entirely, or switch to a more suitable loan with the same lender.
Are You Stuck in a Bad Debt Cycle?
Bad debt is when you borrow money to purchase a throw-away item you probably won’t remember you own a month from now. Make sure you know the signs you may be caught in a bad debt cycle. If you are, then consolidating your debt into your home loan means you will need to change your attitude towards spending. You’ll need to dedicate a larger portion of your income towards your debt consolidation loan for this strategy to work.
The warning signs you’re stuck in a bad debt cycle:
- You’re borrowing money from one source to pay another, such as from a credit card to pay a personal loan.
- You pay off your credit card to only buy something else, getting into debt again.
- You only make minimum repayments on your credit card debt.
- You have more than three different types of debt, including unpaid bills.
How to Refinance Your Mortgage in Perth
1. Check your current home loan and the costs involved
The first step before you look at any new home loan is to ensure you’re familiar with all relevant information about your current mortgage. Go through your online account statements and original documents to see if you may be required to pay any costs associated with the home loan, such as exit fees. These will vary depending on the terms and conditions of your home loan.
2. Do the math
Work out how much you will need to borrow for the new home loan. This includes paying off your old mortgage and any additional money required for other things such as renovations, debt consolidation, or other expenses.
3. Shop around
Make sure you compare home loans to find the best one to suit you and your financial circumstances.
You will need certain paperwork to apply for a new home loan. This includes paperwork such as proof of income, mortgage repayment history and other financial commitments which will be examined.
Once settlement occurs, your new home loan is drawn down – this involves paying off your current home loan using the funds from the new home loan.
The Pros of Refinancing Your Mortgage in Perth
- Reduces your monthly mortgage repayments
- Reduces your home loan balance
- Releases equity in your home to achieve financial goals
- Consolidates high-interest debt into a low-interest home loan
- You can get out of a high-interest bad credit home loan
Consolidate Your Debt
If you’re struggling to manage your finances from month to month, you may be considering refinancing your mortgage onto a lower interest rate and hopefully reducing your monthly repayments. But if you examine your budget, you may find it’s not really your home loan causing you financial stress, but your other debts.
Having multiple debts such as a car loan, personal loan and credit cards can add up to thousands of dollars in repayments. Consolidating these debts through your mortgage simplifies your finances by swapping out your multiple repayments for just the one and you’ll also only have to pay interest the once, at a rate that’s likely to be much lower than what you’d find on a credit card or personal loan.
Be careful of turning your short-term loans into long-term ones. While paying off a maxed-out credit card at a high interest rate may be financially painful in the short-term, adding this debt it your mortgage and paying it back at a lower rate over a 30-year term may ultimately result in you paying much more in total interest than if you kept your debts separate.
Refinance Your Mortgage in Adelaide with Positive Solutions Finance
If you live in Perth, you’re in luck! At Positive Solutions Finance, our dedicated and qualified team have been supporting people in refinancing their mortgage for years. Using our expertise and understand of the industry, we will carefully examine your case to ensure that refinancing your mortgage will help you make actual monetary savings in the years to come. We take every aspect into consideration while assessing your case to make sure you get the best outcome possible.
If you want to learn more about refinancing your mortgage, get in touch with our Perth team today on 1800 40 3328 to schedule a free consultation.