Why refinance?
There are many reasons why people choose to refinance. Lenders rarely reward customers for being loyal, so it’s a good idea to regularly check to see if there is a better-suited loan for you. Some benefits can include:
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There are a number of reasons why you might consider refinancing your home loan. Don't wait any longer! We can do the legwork for you.
Why see us to refinance your home loan?
Now you can see that not all loans are equal, and there are many considerations when it comes to comparing your current one to others on the market. Not only could you potentially save money by being proactive with your current lender or refinancing, but you could also find a loan that better suits your needs.
Whether interest rates are rising, dropping or staying level, remember lenders want your business and there could be attractive options available. If you don’t ask, you don’t get.
We can do the legwork for you. All it takes is a quick chat and we will do the rest.
Some of the things we look at:
- Your financial goals
- Whether you could be on a more competitive deal
- If your loan structure suits your needs
- Any discounts or cash back deals you may be eligible for
- Ways you could save money on your home loan
Your questions answered...
What is refinancing?
Refinancing is where you move from one loan to another, usually with a different rate, features or term. It may be with your current lender or another. This could be to get a better rate, access equity in your home, consolidate debt or access more features.
Refinancing vs repricing
As your Broker, we negotiate with your current lender to get you a better deal, that is called repricing. This can be a straightforward process and your interest rate or fees change, but the lender remains the same. If we find you a better deal with a different lender and move you across, it is called refinancing.
How do you refinance a home loan?
Refinancing works by taking out a home loan and paying out your existing loan. To refinance a home loan, you need to apply for the new loan. Once the new loan is approved, you will transfer your debt to the new loan with your newly agreed rate, features and term.
What are the costs associated with refinancing a home loan?
Refinancing a home loan usually comes with costs associated. These can include an application fee, property valuation fee, settlement fee and mortgage registration fee for the new loan as well as a discharge settlement fee or break cost (for a fixed-rate loan) to close your existing loan. If your equity in the property is less than 20%, you may also need to pay for lenders mortgage insurance (LMI).
Not all of these fees will be applicable to you and some lenders may waive fees to secure your business. On top of that, some lenders offer cashback incentives where they pay you money to transfer your loan to them.
It is important to weigh up the costs with your potential savings over the life of the loan to determine whether refinancing is a good idea for you. We can run these calculations for you.
Home loan refinance offers
A number of lenders offer introductory rates and/or cash back incentives for new customers. These can save you money, however need to be weighed up with the longer-term cost of the loan and whether you will be better off than with your current or another loan. Finding the right home loan to refinance to is a broader picture – we will also consider the structure of the loan, features, term, fees and ongoing rate to determine the right option for you.
Knowing when to refinance your home loan
Refinancing your home loan could save you money that would otherwise be spent on interest. Making the right move at the right time could maximise your savings, but how do you know when to refinance? Read more...
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Get down with low rates
Interest rates regularly change. Is yours still competitive? If you have a variable rate, or your fixed-rate is due to expire, you may be able to negotiate a lower rate with your lender, or find one that will.
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More bells, better whistles
Not all home loans are packaged equal. They offer different features and functionalities. Switching to a loan that allows more regular or extra repayments, an offset account or redraw facility can help you pay less over the life of the loan. Or, if you aren’t using features with your existing loan, switching to a more basic loan could save you in fees.
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Debt consolidation
If you have multiple debts, such as a personal loan, car loan or credit card, you may be able to roll them into your home loan. This consolidates your debt to one repayment and could save you in interest. We will consider the whole picture including fees and repayments to determine if debt consolidation is right for you.
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Free up money for your projects
Whether you’re planning a renovation, need to upgrade your car or have another project in mind, if you have grown equity in your home, you may be able to refinance to access more money to fund it.
Fixed-rate expiring
If your fixed-rate term is due to expire in the upcoming months, it is a good idea to find out your options. Often, when a fixed-rate expires, you will be automatically transferred to the lender’s variable loan, which may not be competitive or suit your needs.
Your equity has grown
If you have been making your home loan repayments, it is likely the equity you own of your home has increased. If this is the case, lenders may be willing to offer you a lower interest rate.
Your credit score has improved
If your credit score has changed for the better since you took out your home loan, it is possible you could be eligible for a lower interest rate. It is always worth asking the question.
How to refinance.
The thing is, refinancing can be made simple with a broker. Here’s what the process looks like.
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Check in
We’ll take the time to understand your circumstances and goals and review your current mortgage, including any exit fees or additional costs.
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Your shortlist
Next, we compare your loan with others offered by over 60 lenders to see if you could be better off somewhere else. You will receive a shortlist of our recommendations, which may include renegotiating with your current lender.
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Take action
When you’ve made an educated decision, it’s go time. We do the legwork for you from application to settlement. We then regularly check in to make sure your loan is still working hard for you.
How much could I save by switching loans?
Different loans have different fees, features and repayment options. Use our loan calculator to see how the numbers stack up between two loans.
7 ways to save big on your home loan.
Download our free guide to become a mortgage maven and save money over the life of your loan.
Refinancing. It's not a dirty word.
Download your Ultimate Refinance Guide.
FAQs about refinancing.
How much does it cost to refinance?
Refinancing can help you secure a lower interest rate on your home loan, consolidate debts or even pay off your loan faster. However, there are some hidden fees. These include the discharge, application and settlement fees.
Does it cost to use a broker?
In almost all scenarios you are not required to pay a fee for our services. Instead, we’re paid a commission by the lender you choose through. Learn more here and get in touch if you have any questions.
What is a good interest rate?
Each interest rate depends on loan type, repayment plan and several other factors. This means a good interest rate for you may not be a good interest rate for someone else. Get in touch with me today to to find out which loan type, repayment plan and lender will give you a competitive interest rate for your needs.
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