Refinancing & Debt Consolidation

Refinancing & Debt Consolidation

Are you getting the best bang for your buck? Score a better interest rate, consolidate your debt or access your equity for renovations through refinancing.

Refinancing with Kudos Money

When refinancing, it’s important to not get swindled with a new loan arrangement that isn’t any more beneficial than your current one. Our team of Melbourne finance brokers will help you decide whether refinancing is right for your situation and guide you through the refinancing process.

What is Refinancing?

Refinancing, in short, is the process of taking out a new loan to replace your existing one. The new loan could be with the same lender, or you might consider moving to a different one if that is a better option. The end goal - to maximise the financial outcomes for you and your family.

Why would I consider refinancing?

The worlds is a rapidly changing place, life is always moving forward, we make changes in our everyday lives as we grow and our needs change, so why wouldn’t we do the same with our loans and mortgages?

There’s never been a better time to get smarter with your finances and re-think your existing lender or home loan provider.  

Some of the main reasons you might consider loan refinance are:

To secure a better interest rate than you currently have

Changes in interest rates are often the catalyst for refinancing your loans. Make sure you take advantage of today’s best interest rates to save across the lifetime of your home loan.

Looking for long term security of a fixed vs variable rate

Trying to stick to a budget or plan for your financial future? The certainty of a fixed rate home loan may be best for you, particularly in a time when interest rates available are so low.

Looking for more flexibility and options? If you’re willing to ride the wave of interest rate fluctuations but want options like the ability to make extra repayments or redraw facilities, then a variable rate might be right for you.

Or maybe you would like the best of both worlds, low interest rates and flexibility, therefore a combination of both fixed and variable may be a great option.

Debt consolidation

Simplify your life and your debts. Debt consolidation can help you gain control back of multiple loans and credit cards that are complicated to navigate and keep on top of.

Access equity in your home

With house prices sky-rocketing throughout Australia, the value of your home may have significantly increased. Refinancing your home loan can potentially tap into that extra equity, perhaps freeing up funds for that long-awaited dream renovation or any other worthwhile cause.

Need more flexible options and features

Streamline your finances by rolling all of your loans, bank accounts and credit cards into the one place.

Offset accounts – these allow you to keep your everyday and long term savings against your mortgage which save you interest on your home loan and reduce your loan term.

Redraw facilities – the ability to access your extra payments when you need it most.

Extra repayments – don’t get caught out by fees for making extra repayments into your loan by ensuring you have a loan that meets your goals and objectives.

Payment frequency – keep your repayments manageable and discover ways to help pay your loan off sooner by changing when repayments are made.

Change of circumstance

Life is full of twists and turns, some are planned and some, not so planned. Whether it be the loss or reduction of income, a new job, getting married, starting a family, downsizing or starting a business; all of these big life moments come with different financial commitments which can impact your ability to meet repayments. Guidance through these changes by the Kudos Money team can help secure your financial future for all the adventures life throws at you.

Why do I need a mortgage broker?

Navigating banking jargon and hidden nasties in the fine print can be complex and frustrating when trying to compare loan options and find the right product for you.

It’s easy to get caught out by exit fees or be lured by the temptation of lower fees, only to end up saving a few measly dollars over the life of your loan. Our Kudos Mortgage brokers guide you every step of the way so you can make financial decisions with confidence.

If you think about it, a bank will only offer you their own home loan products and they never tell you that the bank down the street has a better offer more suited to you. Our Kudos Money mortgage brokers have the expertise and industry knowledge which means we listen to your goals and objectives and do the research for you to ensure you receive the best advice and products tailored to your personal needs and circumstances.

Get a loan recommendation

Refinancing Case Studies

Paul Kusli: Mortgage Specialist

Case Study One

Total Debt

$635,000

Monthly Repayments

$6,368 per month

Total Savings After Refinancing

$3,816 per month

Our clients came to us after having a business fail and amassing a number of debts. They were now both working PAYG jobs, making enough for the repayments but with very little money left over. They were stressed and deflated, working only to make their monthly repayments. Their total debt was around $635,000 and was made up of:

●      1x Home Loan

●      2x Investment Loans

●      1x Business Loan

●      1x Overdraft

●      1x Business Credit Card

●      1x Car Loan

●      1x Personal Loan

●      3x Personal Credit Cards

●      1x Store Card

Originally their repayments were a huge $6,368 per month in total. We were able to refinance and consolidate their debts, bringing their repayments down to $2,552 per month which is a saving of $3,816 per month.

They now have a strategy in place to take half of the $3,816 savings each month and make additional payments to their consolidated debts. This will enable them to pay off the consolidated debt much quicker and at a lower rate, while still having an extra $1,908 back in their budget each month. The refinance, debt consolidation and additional repayments will allow them to pay off the debt in 14 years and 4 months, saving them $147,000 in interest.

want to know how we can help you?  Get in Touch
Paul Kusli: Mortgage Specialist

Case Study Two

Total Debt

$508,000

Monthly Repayments

$5,695 per month

Total Savings After Refinancing

$2,956 per month

Stressed and burnt out, our clients were working just to make ends meet. They knew there was a better way but just didn’t know how to achieve it. Their total debt was around $508,000 and was made up of:

●      1x Home Loan

●      2x Car Loans

●      2x Personal Loans

●      2x Personal Credit Cards

Originally paying $5,695 per month, we were able to refinance and consolidate their debts and bring the repayments down to $2,739 per month, a saving of $2,956 each month. They now redirect ⅓ of the $2,956 savings back towards the home loan, allowing them to pay off their home in 18 years and save $145,000 in interest.

One of the applicants was able to quit their second job and they still had plenty of money left over for everyday expenses, to make extra repayments or to put money away into a savings account.

want to know how we can help you?  Get in Touch

Kudos Money Aust Pty Ltd ACN 644 339 444 is an Authorised Corporate Credit Representative (527061) under LM Broker Services Pty Ltd Australian Credit Licence 517192.

The information provided on this site is on the understanding that it is for illustrative and discussion purposes only. Whilst all care and attention is taken in its preparation any party seeking to rely on its content or otherwise should make their own enquiries and research to ensure its relevance to your specific personal and business requirements and circumstances. Terms, conditions, fees and charges may apply. Normal lending criteria apply. Rates subject to change. Approved applicants only.