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- In Bee Savvy - Getting the most out of your loan, First things first - Steps before applying for finance
According to a recent survey from a major Australian bank, over 50% of respondents do not understand key mortgage concepts such as equity, offset account or refinance.
What Do These Terms Mean?
Equity refers to the value in your property that you personally own. This is calculated by taking the value of your property and minusing the amount you owe on your mortgage. The figure you are left with is the amount of equity that you have.
Offset accounts are used as a tool to help reduce the amount of interest you may have to pay on your home loan. If you have a $500,000 home loan, and you have $20,000 in your offset account, you will only be charged interest on $480,000.
Refinancing is when you look at the current home loan that you have, and generally take that loan to another bank, with a better interest rate, or with features that you require that you don’t currently have.
It is important to understand these key mortgage terms to ensure that you can communicate your needs and desires for your home loan. If you have certain goals, such as paying off your mortgage faster, or accessing equity from your home loan, it’s important to know what to ask for.
How Bee Finance Savvy can help
At Bee Finance Savvy, we have in-depth conversations with all of our clients to help understand their goals and desires.
We have access to over 30 lenders, and each of those lenders have a variety of products with varying features, rates and fees. So we want to ensure that we match you with a home loan that will suit your needs.
If you need help in exploring your options for your first or next home loan, we are happy to help.
Our friendly broker Desiree is here to answer all your questions. Based in Sydney’s lovely Sutherland Shire, Desiree works with clients all across the country.
If you’d like to hear from just some of our satisfied customers, take a look at our reviews on WOMO https://www.wordofmouth.com.au/reviews/bee-finance-savvy-miranda