Need Cash for Some Holiday Spending? Here’s Why Refinancing Might Be the Answer

06 Oct Need Cash for Some Holiday Spending? Here’s Why Refinancing Might Be the Answer

The holiday season is looming, so if you are struggling to find a budget for your Christmas shopping, you might want to consider refinancing.

Need Cash for Some Holiday Spending? Here’s Why Refinancing Might Be the Answer

According to ASIC (Australian Securities and Investments Commission), Aussies plan to spend $955 on average over the holiday season. The majority resort to their savings when it comes to paying for Christmas presents while others opt for credit cards, Christmas bonus, and loans.

We have discussed here before the reasons why you should refinance. Consumers are often advised to consider refinancing in order to obtain a better interest rate and payment term. Instead of throwing out the original mortgage and creating a new one, the current loan is initially paid off to give way to the second loan. However, in this context, you can opt to cash out the equity of your home loan. To know if you have enough equity, it’s advisable to consult with your local finance broker.

What is cash out?

To give you an idea, this is a term used by Australian lenders to describe when a borrower releases the equity from their home, commonly known as home equity loan. The loan amount is determined by the value of the property, and the value of the property is determined by an appraiser from the lending institution.

Okay, this might sound overwhelming for some but as your Finance broker, I could help you with the whole process. Here at Soul Finance Group, we could advise how much you can borrow and let you know the risks and the benefits as well.

Call me today on 0408 081 082 for a no-strings mortgage evaluation and see how much you could save by refinancing your home now– and get your loved ones’ Christmas present list checked off early this year to avoid hassle and stress.

Reference: https://www.moneysmart.gov.au/managing-your-money/budgeting/spending/australias-christmas-spending

Disclaimer:

Credit Representative (486927) is authorised under Australian Credit Licence 389328.

 This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply.