Refinance Creating Significant Savings
Our clients had several loans secured by three different properties. The loans had “mixed purposes” because over time, an existing loan was increased in order to pay a deposit on the next property.
With the clients having done this 3 times over a period of a few years prior to meeting with us, their loan structure was in a mess.
The total of the existing loans was $1.25m, and the average interest rate was 4.15% pa.
We identified a fantastic opportunity to refinance the loans and reduce the rates significantly.
However, one of the clients was retired, and the other was aged in his 50’s. We knew the Lender would ask many questions about how our clients intend to repay the loans either before, or during their retirement.
We assisted the client and their Financial Adviser to comprise a realistic “exit strategy” and we demonstrated the many positives of their refinance proposal to a far more competitive mainstream Lender.
All of the loans were tidied, refinanced to a better suite of products, and the average interest rate was reduced to 2.60% pa, representing savings to our clients over $19,000 per year.