Wednesday 8th May 2019

A Guide to Refinancing Your Home Loan

A Guide to Refinancing Your Home Loan

Life changes, and so does your financial plan. There are
many reasons why you might consider refinancing – perhaps you are looking to
get lower rates, consolidate your debts or make a major purchase with your
equity. Whatever your reason is, it is a good idea to step into the process
armed with knowledge. If you’re looking to refinance to another loan, here are
the things you should consider.

Why Refinance?

Refinancing can allow you to reconstruct your mortgage.
Moving into a new plan can help you access lower interest rates and lower
repayments, save money, lengthen or shorten your loan period, switch loan types
from fixed to variable or vice versa, consolidate all your debts into one loan,
and get access to your home equity.

Should You Refinance?

When it comes to refinancing, your decision shouldn’t be
based solely on lower rates. Refinancing may or may not be a good move
depending on a number of factors. Refinancing may be your solution if you find
yourself in one or more of the following scenarios:

  • Your current rate is no longer competitive
    considering the market rate.
  • You are looking to consolidate debts from
    various sources.
  • You are going to live in the property you’re
    purchasing for a while to maximise the cost savings.
  • You want to unlock equity to fund on investment,
    home renovation or other large purchases.
  • You have a satisfactory credit history or
    repayment record, making it more likely for you to get better rates for your
    new loan.
  • You have a high remaining balance on your loan,
    or you intend to make redraws on your equity.
  • Your current loan has low to no early exit fees,
    and the savings from the new loan outweigh the setup costs.

How to Refinance

The process of refinancing is similar to that of standard
loan application. Start by speaking to a broker about your financial situation
and current loan.

From then, your broker will research the market to figure
out your options. Once we find a new plan that suits, we will help you with
your application. The lender will then assess how much they can lend you.

Should your application be approved, your new lender will
arrange the transfer from your old creditor and help you settle into your new
plan within two to four weeks. And that’s it – you’ve refinanced!

Need help sorting your options for refinancing? Call us for
a chat.