Westpac Home Loans

Westpac Refinancing

Key Benefits

+ One of Australia’a major banks
+ Branch access is Australia-wide
+ Wide variety of home loan products

Drawbacks

x Higher rates for some customers
x Annual fees attached to some loans

Westpac Home Loan Products Comparison

 

FAQs

What does refinancing a house mean?

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.

What do banks look at when refinancing your home?

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.

What is a good loan to value ratio for a refinance?

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.

How much equity do you need to refinance?

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.

What are the benefits to refinancing your home?

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.

What is the process of refinancing a house?

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.

What to do before refinancing a house?

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.