As a concreter, your income can vary with project seasons and market demand. That's exactly why reviewing your mortgage regularly makes sense – it could unlock opportunities to improve your financial situation and support your business growth.
Mortgage refinancing involves switching your existing home loan to a new lender or restructuring your current loan with your existing lender. This process gives you access loan options from banks and lenders across Australia, potentially opening doors to more favourable terms than what you currently have.
Understanding Your Current Position
Before exploring refinancing options, take stock of where you stand. If your fixed rate period ending is approaching, now might be the perfect time to review your loan. Many concreters find themselves paying higher rates than necessary, especially if they've been with the same lender for several years.
Your current interest rate compared to today's market rates is a key factor. Even a small reduction in your rate can translate to significant savings over the life of your loan. Consider factors like:
• Your current loan amount and remaining term
• Whether you have a variable interest rate or fixed interest rate
• Your property's current value versus your loan balance
• Changes in your financial situation since you first obtained the loan
Key Benefits for Concreters
Refinancing offers several advantages that align particularly well with the needs of tradespeople like concreters.
Accessing a lower interest rate remains the primary motivation for most borrowers. Even a 0.25% reduction can save thousands over your loan term. With refinance interest rates often more competitive than existing rates, this benefit alone can justify the switch.
Releasing equity in your property opens up possibilities for business expansion. Whether you need new equipment, a larger vehicle, or want to release equity to buy the next property for investment purposes, refinancing can provide the funds.
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Consolidate debts into your mortgage to reduce overall interest payments. If you're carrying credit card debt or equipment finance at higher rates, combining these into your home loan can reduce loan repayments substantially.
Change your loan term to match your current goals. Extending the term reduces monthly payments, while shortening it helps you pay off your mortgage sooner.
Loan Options Available
As a concreter, you have access to various loan structures. A variable interest rate offers flexibility and the potential to benefit from rate decreases. Alternatively, a fixed interest rate provides certainty for budgeting, particularly valuable when your income varies seasonally.
Many lenders offer better loan options specifically designed for tradespeople. These might include:
• Flexible repayment options during quieter work periods
• Higher borrowing capacity based on trade income
• Reduced documentation requirements
• Specialist assessment of contractor income
The Application Process
The application process for refinancing has become more streamlined. Most lenders now offer a streamlined application process that recognises the unique income patterns of contractors and tradespeople.
You'll typically need to provide:
• Recent banks statements (usually 3-6 months)
• Tax returns and financial statements
• Details of current loans and debts
• Property valuation
• Proof of income and contracts
Working with a specialist mortgage broker who understands the trades industry can help check eligibility for special lender policies that might not be widely advertised.
Conducting a Home Loan Health Check
Regular home loan health checks ensure your mortgage continues to serve your needs. As your business grows and your financial situation evolves, your mortgage should adapt accordingly.
Consider refinancing when:
• Your current rate seems high compared to market rates
• You need to access equity for business or investment purposes
• Your financial situation has improved significantly
• You want to consolidate other debts
• Your current lender's service no longer meets your needs
Making the Right Choice
Refinancing isn't just about rates – it's about finding a loan that works with your lifestyle as a concreter. The right lender will understand seasonal income variations and provide flexibility when you need it most.
Potentially access a higher loan amount if your property has increased in value or your income has grown. This additional borrowing capacity can fund business expansion or investment opportunities.
Remember, the cheapest rate isn't always the right choice. Consider factors like ongoing fees, redraw facilities, offset accounts, and the lender's flexibility with contractor income.
Refinancing your mortgage could be one of the smartest financial moves you make this year. Whether you're looking to reduce repayments, access equity, or simply ensure you're getting the most from your mortgage, exploring your options costs nothing but could save you thousands.
Call one of our team or book an appointment at a time that works for you. Our specialists understand the unique challenges concreters face and can help you find loan solutions that support both your personal and business goals.
