In Australia, the average home loan is refinanced every 4-5 years. Here’s how refinancing is helping more Australians in more ways.
Taking out a loan to pay off an existing loan may seem strange at first but, more often than not, borrowers opt to refinance.
In fact, every 4 to 5 years, the average Australian home loan is refinanced. The reason so many homeowners refinance is due to access to lower rates, extra cash for renovations / repairs and other things that pop up in life.
However, many don’t realise that refinancing isn’t just limited to the mortgage world. Car loan refinancing is increasingly becoming a hot option for borrowers. Driven primarily by the all-time low rates of today, car loan borrowers are finding refinancing offers savings well worth the switch to new loan agreement.
But it doesn’t begin and end there.
Novated Leasing agreements can take savings even further. A Novated Lease is a three-way arrangement between yourself, your employer and a financial institution. As a borrower, you’re able to allocate a portion of your pre-taxed income (the amount before it enters your bank account) toward unavoidable car costs.
Unavoidable car costs include things like fuel, registration, tyres, insurance, servicing and maintenance and financing.
As a result, this often leads to both tax and GST savings.
Costs depend on a few different factors. The amount owing on an existing loan, how much your car costs to run and your taxable income for example.
To find out how Novated Leasing and refinancing can work to save you money, get in touch with Positive Salary Packaging a call on 1300 946 527 or request a free, no-obligation chat.