How A Couple Secures A Lower Rate After Their Fixed Term Ends

A Quick Overview Of The Client’s Situation

The Story

Leo Smith, 34, works in construction while his wife, Mia Kelly, 32, works in hospitality. Leo’s annual income is $131,000 and Mia earns $20,000 in a year.

The couple was looking to refinance their owner-occupied property and consolidate for better interest rates on their debt.

The Problem

The couple had been on a fixed-rate term for the past two years, for which they were able to secure a low rate of 2.09% when rates were at their lowest. However, their fixed term has ended, and with successive interest-rate hikes, their mortgage rate has increased by almost four percentage points. This increase in their mortgage repayments has caused them significant concern.

They are now considering refinancing to a variable rate. Their current lender has offered them a rate of 5.38%, taking into account the March cash rate increase, but they were not satisfied with that.

The Solution

The couple had previously sought assistance from Home Loan Experts when they secured their fixed-rate loan two years ago. When they decided to refinance with other lenders, they turned to our experts once again, grateful for the exceptional service they had received before. This time, they were connected with Jenish Manandhar, an outstanding mortgage broker known for his professionalism, timeliness and dedication to providing excellent service.

Jenish worked diligently to identify lenders that could approve the couple’s refinance application. He:

• Highlighted several key strengths of the couple’s financial situation, including their excellent serviceability, income and repayment history.
• Emphasised their commitment to saving more and making extra repayments to pay off their home loan faster.
• Convinced the lender that the couple’s employment situation and earning capacity had not been affected by COVID-19 and would remain stable.

The Happy Ending

Thanks to Jenish’s hard work and expertise, the couple was able to secure a variable-rate loan with favourable terms and rates. After being offered higher rates by other lenders, Jenish identified a lender that approved the loan application at an interest rate of 5.04% (after adjusting for the March cash rate increase), resulting in a monthly repayment savings of about $47 compared with the rate they were offered previously.

Furthermore, with the help of Jenish and the team at Home Loan Experts, Leo and Mia received a cashback offer of $4,000 in addition to securing a loan at a lower interest rate. The couple was extremely grateful for the team’s exceptional service and dedication to finding them the best possible loan options.

Summary Of The Loan Approved

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