Can I refinance my agribusiness loan?
Under Australian law, banks cannot force their customers to stay with them for the life of the loan. However, your bank may impose financial penalties for leaving (such as exit or break fees).
Our brokers can review your loan for you and tell you what these fees and costs will be, and also what the “switch costs” associated with refinancing your property will be.
In every case, we will make sure that if you choose to refinance, you will be financially better off under the new deal.
Should I refinance my agribusiness loan?
Loans that used to be ‘set and forget’ are now commonly subject to annual review and require revaluation every three to five years.
Each time your loan is reviewed, it’s your opportunity to test the market and make sure you have the most competitive deal available.
One of our brokers can help you compare your loan against the products currently in the market, and determine how much you can save over the life of the loan (potentially tens of thousands of dollars, depending on the size of the loan).
When can I refinance my agribusiness loan?
In most cases, we find that borrowers can get better rates from refinancing with a new bank when their loan is more than three years old. Banks tend to value new business far more than existing business, and will offer lower rates to attract new customers.
If you’re on a variable rate, your current bank has probably increased the rate over time, or failed to pass on rate cuts, so the rate you’re on is no longer competitive.
What are my agribusiness loan refinancing options?
You will have more options when considering a refinance than you did when you originally took out the loan, because it’s more difficult for a start-up to get finance than it is for someone with a proven track record.
If you have had your property for several years, your equity ratios have probably improved, which will give you access to better rates through refinancing than you are getting with your existing loan.
For expert advice, speak with one of our brokers.
What are the agribusiness loan refinancing rates?
The base rate that the banks quote for agribusiness finance will differ from bank to bank, and rates and lending criteria can vary from week to week.
It is important that you review the market at the time you want to change your financial arrangements.
Contact us for advice and assistance.
Can I refinance an agribusiness loan with bad credit?
Bad credit may limit the options that are available to you, but it is in no way a barrier to you refinancing your loan.
Eakins Finance will help you source and compare your options. Contact us for a free consultation.