+ One of Australia’a major banks
+ Branch access is Australia-wide
+ Wide variety of home loan products
x Higher rates for some customers
x Annual fees attached to some loans
The Westpac refinancing guide breaks down a range of different aspects which you will need to take into consideration. The guide underlines how the decision to refinance should not be taken lightly, and instead requires careful planning and analysis. The Westpac refinancing guide also outlines a list of the most common motivations behind refinancing applications. These include;
Get access to as much as 95% LVR of a home’s equity, with insurance. The money can be used for an investment or line of credit, and the interest rate is variable. Benefits include redraw, a split loan option, construction, additional repayments, and a choice between interest only and principal and interest payments.
1 Year Fixed Rate
Self-employment does not need to limit refinance options at Westpac. This bank will even help customers get approved. Get a good loan for an investment property and borrow as much as 95% LVR with insurance, and get redraw, interest only payments, and extra payments as options.
2 Years Fixed Rate
Get a good loan for an investment property and borrow as much as 95% LVR with insurance. Choose principal and interest or interest only payments. Other options include making extra payments and redraw.
3 Years Fixed Rate
Investors can get 3 years of a steady fixed rate on an investment property. They can also borrow up to 95% LVR if insurance is added into the loan. Available options include choosing between interest only or principal and interest payments, redraw, and making extra payments.
4 Year Fixed Rate
Investors do not necessarily need a huge down payment to get a mortgage for their next investment property. Borrow as much as 95% with insurance, and get 4 years of a fixed rate. Options include redraw, the ability to make additional payments and choosing between interest only or principal and interest payments.
5 Year Fixed Rate
Take advantage of this loan for as much as 95% LVR with insurance and get 5 years of fixed interest. Make a choice between principal and interest or interest only payments. Other options include redraw and extra repayment.
10 Years Fixed Rate
Looking to get an investment property refinanced? Get a loan with only 5% down and let Westpac provide 95% LVR with insurance. Options include choosing between principal and interest or interest only, extra repayment, and redraw.
1 Year Fixed Rate
Refinance a home with a one year fixed interest mortgage. Borrow as much as 95% of the LVR plus LMI on the loan. The available options include using it for an investment, redraw, extra repayments, and choose between principal and interest or interest only payments.
2 Year Fixed Rate
Refinance a home for as much as 95% of its LVR, with insurance being included, or 80% without it. The loan can be used for an investment property, and repayment is either principal and interest or interest only. Other options are redraw and extra repayments.
3 Year Fixed Rate
Homeowners can enjoy the benefits of knowing what the interest rate will be for three years. They can also finance up to 95% of LVR with LMI, or 80% without it. Options include redraw, investment, extra repayments, and a choice between principal and interest or interest only.
4 Year Fixed Rate
Homeowners can relax knowing that their payments will not increase for four whole years. Get a loan for as much as 95% LVR with insurance. Money can be used for an investment property, and benefits include redraw, choosing between principal and interest or interest only, and extra repayments.
5 Year Fixed Rate
This mortgage can provide a lot of financial stability in times of economic stress, enabling homeowners to know what their payments will be for five full years. Finance as much as 95% LVR with insurance. Money can be used for investment. Borrowers can choose between interest only or principal with interest. Redraw and extra payments are available.
This basic home loan gives owner-occupied homeowners the flexibility to adjust their loan as needed. It has lower interest rates and no maintenance fees. Options include additional repayments, redraw, increasing the loan, and interest only or principal and interest payments.
When looking to refinance an investment property, this loan provides a discounted rate for three years. It has no maintenance fees and enables other features to be added. Options include interest only payments and ability to increase the loan and make extra payments.
Homeowners benefit by being able to reduce the amount of interest paid by having a linked Choice bank account. They can also pay interest only for up to 5 years, take a repayment holiday, get redraws, and more.
Investors are able to repay a refinanced mortgage faster on an investment property with a connected offset account. Borrow up to 95% LVR with insurance on this variable home loan. Options come with split loan, redraw, and a choice between principal and interest or interest only payments.
Refinance a home or investment property with the “Package.” This deal can be obtained for a variety of loans, including investment properties, equity access, and rocket loans. Loans can have either fixed or variable interest rates.
Westpac provide a handy checklist designed to guide you through the Westpac refinancing process.
Assess the features and benefits
Different loan products provide different features and benefits. You are encouraged to decide which features most suit your situation.
Benefits can include the ability to redraw money from additional payments, the flexibility to increase, decrease or suspend payments, or reliability of a fixed interest period.
Take into account costs
You are also advised to remember that, in most cases, home loan refinancing is not free. There will be charges incurred on both sides, as the original lender seeks a discharge or termination fee as well as compensation for a broken contract. The new bank or lending institution may also levy a registration fee or other charge against the purchaser.
Weigh up the options
Costs and interest rates should be factored in alongside each other, as you aim to distinguish which loan deal is the most suited to your situation and your needs. Even relatively small decreases in the rate of interest applied to the loan can provide big savings across its entire lifetime.
That said, you do not want to be waiting years to begin benefiting from a Westpac refinancing package. With this in mind, you should outline a clear aim including an acceptable latency period between entering into the agreement and benefiting financially. This makes it easier to select the right loan product when choosing a Westpac refinancing loan.
Westpac Line of Credit Home Loan
Westpac Fixed Rate Investment Property Home Loan
Westpac Fixed Rate Options Home Loan
Westpac Flexi First Option Home Loan
Westpac Flexi First Option Investment Home Loan
Westpac Rocket Repay Home Loan
Westpac Rocket Repay Investment Home Loan
Westpac Premier Advantage Package
Refinancing is when you replace your existing with a new one, either with the same lender or a different one. It essentially means that the first loan is paid off and a new one is created, allowing the borrower to secure a better interest term or rate.
When you’re looking at refinancing, the bank considers all the usual things involved in the loan application process. That includes your credit score, financial standing and your savings and repayment history. They’ll also look at how much equity you already have in your home although that won’t always make or break your success.
Generally, lenders prefer a loan to value (LVR) ratio of less than 80%. This is calculated by dividing the loan amount by the value of the property, as assessed by the lender.
A good rule of thumb is that you should have at least 20% equity in your home before you refinance. However, if you have a good credit rating, you may still be able to refinance if you have less than that.
There are a range of potential upsides that come from refinancing your home. It can be a good opportunity to secure a lower interest rate, reduce your monthly repayments, streamline how your repayments are made and access equity in your home to purchase another property.
There are a few steps involved in refinancing your home. If you decide it’s the right choice for you, you’ll want to contact your lender to see if they can give you a more competitive deal. You should also work with a qualified broker to help you shop around and see what other home loans are on the market. If you decide to want to make the switch, you’ll need to apply for your new mortgage as per the usual home loan process. Once approved, you’ll need to notify your existing lender to let them know you’ll be exiting the mortgage.
There are a few steps you should take before going down the refinancing path. Firstly, you’ll want to look at your own circumstances and financial standing, to make sure it’s definitely the right decision for you at this point in time. You’ll also want to check that your current mortgage doesn’t have an in-built waiting period, as this may prevent you from refinancing right now. Then, you’ll want to compare current interest rates with your existing one as well as any exit and application fees, to make sure it’s actually going to save you money in the long run.