Brandon Perry has a decade of experience in the accounting, taxation and financial services industries where he has dealt extensively with high-net-worth individuals, small to medium enterprises and self-managed superannuation funds.

What To Consider When Refinancing A Property Loan

by Brandon Perry – Devoir Accounting

Thanks to a period of record high number of consecutive interest rate increases by the Reserve Bank, many people are asking questions about refinancing their current home and/or investment property loans.

During these times of higher interest rates and cost of living, people want to maximise their cash flow by refinancing. This is through decreased repayments from a cheaper interest rate or a longer loan term.

Whenever clients are looking to refinance, I recommend considering the following:

• Be aware of the costs of refinancing.
• Ensure the loan has features you want such as an offset account (which can give you flexibility with your spare cash and be tax effective).
• If the loan has an introductory rate, know what this rate will revert to at the end of the introductory period.
• If there are investment property loans involved, ensure that loans are split to easily identify the tax-deductible portion of interest.
• Remember that a longer loan term may mean more available cash month to month, however, the total cost of the loan will end up being higher.
• Banks are looking at retaining existing customers more so than in the past and it may be worthwhile checking with your existing bank or your mortgage broker a discounted rate that may be available.

If you have any questions or require any assistance, please reach out on (02) 8338 1041.