Australians love refinancing and Australian mortgage brokers are very experienced at showing you how to reduce monthly repayments, save interest and consolidate personal loans as well as credit cards.
Refinancing an owner occupied (principal place of residence) home loan and investment property home loans are easily refinanced for a better deal. Experienced mortgage brokers will do all the work for you, it generally takes 4-6 weeks to refinance a home loan if finances are straight forward and simple, longer for complex financial positions. The main factor impacting speed is customer & broker responsiveness.
The home loan that helped you purchase your first home or second home may not be the best option, five, ten or twenty years down the track. As your lifestyle and financial circumstances change, it will be necessary to review your home loan to ensure you’re getting the best deal.
Refinancing involves switching your home loan for a more suitable product that will suit your changing needs or taking advantage of a better rate and lower fees. While it may seem easier to keep your home loan where it is, complacent borrowers could miss out on thousands of dollars in interest and prolong the life of their loan. It is generally referred to as loyalty tax.
Comparing the entire range of mortgage products on the market is daunting, but with the help of your mortgage broker, you can ensure refinancing gives you a product that suits your exact needs and get you a better rate. It’s always about the rate!
If you’ve decided to refinance an existing property, you’ll need to take a look at a few things such as the terms of your current loan including interest rate, maturity rate, and type of loan, as well as the equity you have in your property. The best time is when you have secured a safe & satisfying permanent position for PAYG or two years of consistent income for the self employed.
A home loan health check will look at all these things and help you to identify if your current home loan is still working for you and meeting your requirements. The best time is when your principal place of residence requirements has changed.
A home loan health check can be performed with a specialist mortgage broker in person or over the phone in as little as 20 minutes. They can advise the perfect rate and home loan product for you.
After you & your mortgage broker have determined the amount of equity you have in your property, they will introduce you to the wide range of products that are available. You’ll have flexibility, security and a product designed to suit your needs.
They will be able to provide you with pre-approval for your loan together with interest rates, fees & repayments, then help you move ahead with your plans.
The world is at your feet. Your mortgage broker can help if you are looking to:
○ Save money on your current interest payments by refinancing at a lower rate
○ Consolidate your existing personal debt into one, lower-interest home equity loan
○ Upgrade a room in your home
A professional mortgage broker’s mission is to advise you and help you make the right choices about your financial future & make the refinancing process as smooth as possible.
| Type of Loan | Interest Rate | Comparison Rate | |
|---|---|---|---|
| Lifestyle First Refinancer Special | 1.94% p.a. | 1.94% p.a. | Fix & Save - 2 Years Fixed | 1.99% p.a. | 3.27% p.a. | Fix & Save - 1 Years Fixed | 1.99% p.a. | 3.34% p.a. | Fix & Save - 3 Years Fixed | 1.99% p.a. | 3.19% p.a. | Advantage - 2 Year Fixed (Special) | 2.15% p.a. | 2.61% p.a. | Advantage - 1 Year Fixed (Special) | 2.15% p.a. | 2.63% p.a. | Super Low 3yr Fixed Special Home Loan | 2.19% p.a. | 2.59% p.a. | Advantage - 1 Year Fixed | 2.24% p.a. | 2.96% p.a. | Advantage - 2 Year Fixed | 2.24% p.a. | 2.91% p.a. | Advantage - 3 Years Fixed - Investment | 2.27% p.a. | 3.04% p.a. |
The loan you have now might have suited your needs when you first bought your home, chances are that there might be better loans and smarter home loan providers now. However, times can change, and so can loan requirements. Your current loan may not be the best option for you and your family now. Or maybe you have a number of smaller personal & car loans as well as your home loan, and you realise you are paying way too much in interest & loan repayments. Being able to refinance can mean putting all those loans into one new loan, or taking out a new home loan with a better rate or lower fees leading to lower repayments. While it may seem easier to keep things where they are now, finding a good broker could save you thousands of dollars and help you avoid prolonging the life of your loan. Having everything under one roof, so to speak, can make a big difference. Scheduling a regular mortgage check-up is one way to always ensure you are in the best position you can be. Housing loans can be difficult things to keep on top of, and we recommend close contact with your mortgage broker to make sure you are getting the best deal possible. Whether that’s turning to a refinancer, or tweaking your current loan, your experienced advisors can make a big difference.
It is important whether you seek out a refinancer, or whether you keep things the way they are, to be clear about your goals. Perhaps a new loan is the answer. Your mortgage broker will have loans that can suit any situation. Our two most popular loans are our variable rate and fixed rate loans. We also offer split mortgages, which, as the name suggests, can split your loan into variable and fixed rates too. No matter what your credit history, we are interested in hearing from you. You might be surprised, and be eligible for a loan even if you thought you weren’t. Experienced mortgage brokers have access to loans for people who have had bad credit in the past, as well as low deposit and low doc options. And if you can support your loan application with a pledge from your family, we have a product as well. And, of course, if you are looking for a new loan, brokers also offer toggle offset loans portable loans, and interest only loans.
Being a refinancer, we can unlock the potential of your mortgage loan. However, you may not like the idea of a refinanced loan, especially if your first mortgage loan was difficult and a bit of a struggle. Going through our choice of mortgage loans to find a refinanced loan will be a similar experience in terms of process, but you are not a first home buyer anymore, which is great news, chances are you will benefit from more equity too. The fact you have been through it all once before can make you better equipped. And we can be there to help this time. As a refinancer of mortgage loans, we know every step of the process intricately. Mortgage brokers will use that knowledge and experience to help you take the stress out of finding a refinanced loan.
So, why should you consider refinancing now? With interest rates at historically-low levels, the current environment can present you with a great opportunity. The current variable rates can be a lot lower than when you first took out your loan, which can be very attractive. But it’s important to not make refinancing all about the interest rate. Refinancing mortgages should be done with a goal in mind. Consolidating your debt in one loan, or refinancing to buy another property, can result in different loan recommendations from your mortgage broker. There are no hard and fast rules, but they can help you keep an eye on things, and let you know when the time is right to refinance to achieve your goals. That can mean keeping an eye on your current loans, as well as the economic environment, and even your own family’s needs. There are lots of reasons to refinance, and having us around with access to the same loans as other lenders, means we can make these kinds of moves easier. There is a new breed of faster & smarter home loan providers these days.
Your current home and location can play a big role in refinancing your loan. If you have been paying off your home loan with no major dramas over the years, you have probably built up a lot of what’s called equity. You will most probably be paying way too much interest too. When it comes to refinancing, equity can be solid gold. Equity is your friend; the market value of your home, minus the balance of your loan. The more equity you have, the easier it can be to hit your refinancing goals. We will use another equation based around how much you want to borrow, up against the market value of your property, and come up with a percentage. Anything greater than 80% will generally require mortgage insurance.
Whether you’re refinancing to find a better deal, buy more real estate or free up equity in your home for other reasons, you will need to go through the processes of getting another mortgage. When you apply for a loan to refinance, there is not a lot of difference in what you will need to do. A good start is to work out the equity you currently have in your home, which we will detail below. Speak with your expert mortgage broker about your financial situation, and they will help you find a home loan that will be suitable for your property or financial objectives. If everything goes well, we can give you pre-approval and help you move ahead with your plans. However, you will need to provide us with a few documents, whether you are applying for a mortgage loan for 5 years or 40 years, car or personal loan.
The first step is to provide us with information about your current property. We will do a valuation and let you know how much it is currently worth. That allows you to assess your equity and value your assets. Let your mortgage broker know the details of your current home loan, if it is not with us. That will give us a chance to look at how your repayments have been going and how much you still have to pay. You will then supply all the usual financial documents you need when you apply for a loan, such as proof of income, employment history, liabilities and any assets you have. You will also need to provide proof of identification.
Finding the loan amount you want when you are refinancing can come down to the equity you have in your existing home. If you are looking to refinance simply to find lower repayments or better loan features, then that process is relatively simple. However, if you are looking to borrow more money, there are a few other things to think about, and equity is the most important one. Basically, equity is the difference between the market value of your home, and the balance of your loan. For example, if your home is valued at $950,000 and your loan balance is $450,000, then you could have up to $500,000 equity in your home. Refinancing means you could start with pre-approval of up to $260,000 – $355,000, assuming most banks and lenders tend to only let you borrow up to 80% of the market value of real estate or 90% with mortgage insurance.
It doesn’t matter whether you have, or are looking to get, a fixed rate or variable rate loan, an interest only or a principal and interest loan, there can be some costs and fees hidden in the terms and conditions. Firstly, your mortgage broker has a mortgage calculator that can give you an indication of what you might be able to save by refinancing. You will need to be aware of any ongoing fees and charges over the life of the loan. Take a look at the comparison rate of your new loan to get an indication of them. You may have to pay settlement fees if you repay your loan sooner than expected, and there may also be valuation fees associated with finding out how much equity you have. There can also be legal fees associated with a new loan, and you may have to pay Lenders Mortgage Insurance (LMI) if your new loan tips you over the 80% loan to value (LVR) ratio.
An experienced mortgage broker will know how important it is to get results as quickly as possible if you apply for a home loan to refinance. They can give your home loan a health check in as little as 20 minutes. From there, it’s a matter of finding a suitable mortgage, which they can help you with on the spot, and then applying.
The first thing to look at is the health of your current home loan. Look at your current financial position and work out whether it can be helped by refinancing. That can mean smaller repayments, or give you access to a range of features you currently don’t have. It’s important to remember that refinancing means you may be committing to another mortgage, and you may be extending the time you will be paying a home loan off. Paying less now usually means you will pay it for longer. This can mean you pay more interest over the life of the loan, and that can affect your retirement plans and other financial or life objectives. Remember to look at any fees or charges, and weigh them up against any possible savings and cashback offers. Your skilled mortgage broker combined with recent best interest duties legislation is exactly what you need to navigate the next simple feasibility steps.
