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Commonwealth Bank Refinancing

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FAQs

What does refinancing a property mean?

Refinancing your property refers to the process of taking out a new home loan to replace your existing one. This can involve switching to a different home loan product with the same provider, or moving to another lender.

What is the benefit of refinancing a house?

There are many benefits that can come from refinancing a property. However, the number one reason people do so is because they’re not happy with their current interest rate or term and believe they will save money down the track by switching to another home loan.

How soon can you sell your house after refinancing?

You can generally sell your house soon after refinancing, so long as you don’t have an owner occupier mortgage that requires you to live in the property for a certain amount of time.

How does refinancing a home loan work?

Refinancing works by allowing you to take out a new mortgage to pay off your existing one. It essentially enables you to overwrite the existing loan with a new one hopefully with a better interest rate and term!

How much money can you get from refinancing?

Refinancing your property doesn’t usually equate to immediate cash in your pocket but rather, long-term savings down the track. However, if you get a cash-out refinance, you can generally borrow up to 80% of the property’s value minus the debt you still have left to pay off.

How much can you save by refinancing?

While there’s no concrete figure you’ll save by refinancing, it can result in significant savings. Over the course of a 30 year mortgage, it’s been said that refinancing can shave $20,000 off your repayments just by reducing your interest rate by 2%.

What documents are needed for refinancing a mortgage?

When you’re refinancing your home loan, you’ll generally need financial documents like payslips, your latest tax assessment notice or group certificate. You’ll also need documents outlining your last six months of loan repayments and expenses. If you’re switching to a new lender, you’ll generally need identity documents like your passport, driver’s license and proof of address, too.