Loan Restructure for Clients Coming out of a 4.90% Interest Rate

Are you feeling the pinch of rising interest rates on your mortgage? One of our recent clients certainly was. Coming off a fixed rate of 4.90%, they were concerned about the impact of increasing rates on their monthly payments. But with the help of our Rapson team, they found a solution that not only saved them money but also simplified their finances.

After a thorough assessment of their financial situation, including their savings and spending habits, we identified an opportunity to restructure their loan and make better use of their assets. Our client had a term deposit returning 5.8%, which was due for renewal, and we saw an opportunity to leverage this to their advantage.
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By comparing rates from multiple lenders and negotiating with their current lender, we were able to secure a competitive interest rate that significantly reduced their monthly payments. The current lender ended up offering a very competitive interest rate to retain their client.

But the real savings came from restructuring their loan to include a revolving credit facility, with the term deposit serving as security. Had we refinanced their current loan amount their monthly repayments would be $3,900, however by offsetting the term deposit and not paying interest on this portion they will be repaying $3,500. This strategy has saved them $400 per month. To sweeten the deal, we also secured $1,000 cashback and ensured that there were no monthly fees associated with the new revolving credit facility.

With our expertise and dedication to finding the best solution for our clients, we were able to help them save money, streamline their finances, and avoid the hassle of switching lenders. If you’re facing similar challenges with your mortgage, contact Rapson Loans and Finance today to see how we can help you achieve your financial goals.