Refinance Like a Pro: How A Couple Used Solar Panels to Score Lower Mortgage Rates
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A Quick Overview
| Details | Description |
|---|---|
Problem | Michael and Jessica wanted to access the equity in their home to pursue investment opportunities that can diversify their portfolio. |
Customer Goal | Overlooking potential green home loan discount. |
Loan Amount | $544,000, split into two portions:
|
LVR and Term | 80%, 30 years |
Income | Michael - $156,000 yearly Jessica - $44,000 yearly |
Solution | Pramesh’s expertise secured Michael and Jessica a tailored cash-out refinance featuring competitive rates, an additional 0.1 percentage-point interest-rate discount on a green home loan, a waived first-year annual fee, and flexible features. |
When Michael and Jessica first installed solar panels on their home in 2016, they thought it was just a way to cut down on energy bills and reduce their environmental impact. Years later, those same solar panels unlocked an unexpected financial benefit, lowering their mortgage rates as they refinanced to release equity for investment.
Now part of a family of five, they looked to leverage the value of their home to build additional wealth and provide long-term security for their family. They reached out to their trusted Home Loan Experts mortgage broker, Pramesh Vaidya, who had previously helped them with their home loan. Knowing their situation and goals, Pramesh was ready to guide them through this next step and find a solution that worked best for them.
Solar Panels Unlock An Extra Mortgage Discount
During a thorough review of their situation, Pramesh noticed the solar panels on their property – a detail that sparked an opportunity. He informed them about a green home loan discount they could qualify for because of their home’s sustainable feature, which could lower their home loan rate by 0.1 percentage points.
Excited by the opportunity, Michael and Jessica asked Pramesh to explore ways to maximise this advantage. The solution was a carefully tailored loan package, split into two parts:
- Refinancing their existing mortgage at a lower rate to save money.
- Accessing equity for investments to fund their investment plan.
Pramesh ensured both loans included features like offset accounts – which would help reduce the interest the couple would pay over time – and redraw facilities, giving them the flexibility to access extra repayments if needed. These tools maximised their savings while providing the financial flexibility they needed.
A Split Loan Solution With Green Discounts And Extra Benefits
Pramesh presented Michael and Jessica with a discounted loan package featuring competitive rates, tailored to their needs and split into two parts to maximise benefits.
Split 1: Refinancing Their Home Loan
Loan Amount: $327,200
Product: Discount Home Loan – Owner-Occupier
Interest Rate: 5.78%
Features: Offset, redraw and extra repayments
Split 2: Accessing Equity For Investment
Loan Amount: $216,800
Product: Discount Home Loan – Investment
Interest Rate: 5.98%
Feature: Offset, redraw and extra repayments
Additionally, with this green home loan package, the annual fee of $380 was waived for the first year, saving the couple upfront costs. They were also eligible for a refinance cash rebate of $3288, provided they settled the loan within the next five months.
By refinancing their $330,000 mortgage from their previous lender’s 6.09% rate to the new lender’s 5.78% rate, Michael and Jessica unlocked over $20,000 in interest savings over the loan term.
With an 80% Loan-to-Value Ratio and a 30-year term, they were formally approved for this customised loan package. By leveraging their home’s sustainable features and Pramesh’s expertise, they secured very competitive rates and valuable incentives.
Discover Hidden Savings With A Green Home Loan!
Do you have eco-friendly features like solar panels in your home? Are you looking to refinance or invest but need help figuring out where to start? Professional guidance can make all the difference.
Just as Pramesh helped Michael and Jessica uncover hidden opportunities, an experienced broker can help you explore options you might be missing.
Don’t miss out on potential savings and incentives – our expert team is here to help you navigate your refinancing journey.
Call us at 1300 889 743 or fill in our free online assessment form to discover opportunities you might be missing. Your enquiry is confidential and comes with no obligations.