The New Year 2025 Begins
The new year 2025 begins, and most people like to start it with new resolutions. Like many of us, these resolutions are often related to health or fitness. But why not consider a financial one this time? Here are three resolutions worth considering right at the beginning of 2025.
Home Loan Refinancing: The Challenges of 2024
The last year, 2024, was a tough one for most mortgage holders due to the hope of interest rate cuts dangling just out of reach, combined with the issue of inflation. By starting the new year with one or more of the ideas below, you could be in a better position to tackle 2025 head-on, especially by exploring home loan refinancing options.
1. Call for a Home Loan Health Check
To check the health of your present home loan, you need to know the prevailing interest rate. Surprisingly, more than 40% of mortgage holders don’t recall this information. Now is the time to check if your current mortgage still suits your needs.
- Home loan refinancing can provide an opportunity to reassess your current mortgage and secure better rates.
- An average borrower who hasn’t refinanced their home loan in the last 12 months has paid nearly $6,000 more in interest, according to RateCity’s analysis.
Don’t worry—just call us, and we’ll guide you at every step, making the refinancing process smooth and painless.
2. Lower Your Expenses from Your Budget
Monitoring your expenses regularly is a great habit. If you’re not already doing so, start now! Cutting unnecessary expenses can help you save money and maintain a healthy budget.
- Review unused services and cancel them to avoid paying unnecessary costs.
- Build a habit of tracking your expenses—small savings can add up over time.
For example, a daily $5 takeaway coffee costs $1,825 per year, while switching to a DIY French press brew costs approximately $350–$450 annually. That’s a significant saving!
3. Leverage Equity Through Home Loan Refinancing
A home loan is more than just a debt—it can be a powerful tool to achieve your financial goals by leveraging your home equity. As we move into 2025, you might have more equity than you realize, which can be utilized with home loan refinancing.
In January 2023, the median home value across Australia’s capital cities was $770,374, according to CoreLogic. Two years later, it rose to $897,580. This increase means the average city homeowner gained nearly $130,000 in additional equity. This equity could serve as a 20% deposit for a $600,000–$650,000 investment property, opening doors to new opportunities.
Why wait? Call us today at Loan Junction for the best home loan refinancing services. Our team of experts is here to guide you every step of the way, helping you gain a clear financial picture and achieve your goals in the new year.
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.