January 24, 2018
- How Your Personalised Refinancing Report Works
- Your Lowest Interest Rate
- Your Potential Interest Savings
- Your Qualified Home Loan Lenders
- Your Borrowing Capacity
- Your Income Repayment Percentage
- What Are the Steps to Refinance Your Mortgage?
- How Much Does It Cost to Refinance?
- What Documents Are Needed to Refinance a Home Mortgage?
Finding the right loan starts with a comparison of the top home loans available right now. When you request your FREE Refinancing Report, we’ll send you a detailed comparison of over 25 lenders. Our unique loan matching engine will calculate your savings and new loan repayments for the loans for which you can qualify. You’ll also find out the lowest rate available to you.
By evaluating more than 3,000 loan products from our panel of lenders, we’ll narrow it down to the lowest interest rate for which you can qualify. You’ll receive your lowest comparison rate as well so you have complete transparency, making it easier for you to compare the true cost of your loan.
You’ll get to see how your current loan repayment amount compares to the new loan repayment, showing you how much you could save in interest every month if you refinance.
From our panel of lenders, including Australia’s leading bank and non-bank lenders, we’ll show you how many lenders you may qualify with from our 25+ panel. Then, you can choose from the suite of home loan products each lender offers.
Your financial circumstances may have changed since you took out your current loan, which means your borrowing capacity will have changed as well. Your Refinancing Report will detail how much you could potentially borrow now, allowing you to see just how much you can do with your new loan if you’re interested in unlocking your home equity.
Before you refinance, you want to make sure you’ll be able to manage your repayments comfortably. Your Free Refinancing Report will include a look at your income versus your repayments to enable you to organise your finances better. In general, you shouldn’t allocate more than one-third of your monthly household income to repaying your home loan.
Aside from interest savings and lowering your repayment amount, there are a lot of worthwhile advantages of refinancing. Most borrowers switch loans every few years to get lower rates and fees, more flexible features and to unlock home equity in order to do a home renovation, purchase another property or to achieve other personal financial goals.
When you are ready to refinance, you’ll go through these steps to get your new loan:
- Evaluate current situation and reasons for refinancing.
- Compare home loan products and choose your top loan.
- Gather necessary paperwork.
- Fill out your application.
- Your lender will appraise your home.
- Once you’re approved, you’ll review and sign your mortgage contract.
- Sign any discharge documents with your former lender if you haven’t already.
- Contact your home building insurer to amend your Certificate of Currency. Your insurer will send a copy to your bank.
- Your loan is settled on settlement day. This is when your new lender takes ownership of your property title and your new mortgage begins.
Refinancing isn’t free. You’ll pay fees both to leave your current loan and to enter into the new contract. When you add up all the costs of refinancing, you’ll likely end up paying between $1,000 and $2,000 to change to a new loan. If you have to pay lender’s mortgage insurance or if you are leaving a fixed rate loan and have to pay break costs, you could end up paying more than this.
When comparing lenders, don’t just look at interest rates. It’s important to compare fees as well, from loan establishment fees and ongoing account maintenance charges, to discharge fees in case you switch loans again in a few years. Estimating the fees you’ll pay when you switch to a new loan will give you a clearer idea of how much refinancing will cost in your situation – and it will help you more accurately weigh the cost savings of switching to a better loan.
Just like when you applied for your current home loan, you’ll have to give your lender certain paperwork so they can assess your application. You’ll need the same personal identification, income verification and recent financial history documents, as well as documentation related to your current mortgage. Once you have all your refinancing documentation organised, you’re ready to apply for the home loan you want.
Written by Refinancing.com.au
Refinancing.com.au is an end-to-end service that helps people refinance their home loan. We empower you to search for your home loan, and choose the process that suits you.
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A Refinancing expert will contact you shortly to discuss your needs, and how we could potentially save you time and money. If you are not ready to refinance, simply let our team know and they will schedule a call back for another time.
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The Refinancing team.