Jason and Rachael had taken out a home loan to purchase a new home in 2007. At the time, they had selected a loan with a honeymoon period, to take advantage of a lower introductory rate. This reverted to the standard variable rate charged by their bank after 12 months.

In 2011, Jason and Rachael wondered if they were still getting the most competitive rate and the best loan features to meet their changing needs. The amount owed on their loan in 2011 was $580,000. They were planning to start a family, and Rachael’s income would not be coming in for approximately twelve months, and their current loan didn’t offer a ‘loan repayment holiday’ feature.

In meeting with an Energise Home Loans mortgage broker, Jason and Rachael agreed that their best option was to refinance to a different loan, that not only offered a ‘loan repayment holiday’ feature, but also charged 0.7% less interest than their existing loan.

By making this simple change, Jason and Rachael received the loan flexibility they needed for their current circumstances, and also saved $4,060 interest on their loan every year. This was equivalent to more than $95,200 over the remaining time left on their loan.

To refinance, Jason and Rachael followed this simple process:

• Met with an Energise Home Loans mortgage broker, to discuss their existing home loan arrangements and their current needs. This also involved completing a Current Needs Analysis Form together, to clearly ascertain what Jason and Rachael needed in their home loan
• Agreed with the recommendation of the mortgage broker to change to a different lender, that would offer a lower interest rate and a ‘loan repayment holiday’ loan feature
• Provided some simple supporting documentation to the mortgage broker to support the new loan application
• The Energise Home Loans mortgage broker submitted the loan application for Jason and Rachael, and kept them informed of progress of the loan.
• Once the new loan was approved, Jason and Rachael signed the new loan contract issued by the new lender, with the help of their mortgage broker, and submitted this to the bank
• Their mortgage broker coordinated the loan settlement between the previous and the new lenders, and soon, Jason and Rachael were enjoying the benefits of their new loan.

Not bad to save $95,200!