A homeowner interested in remortgaging their existing home loan may want to learn more about how long it can take. Their mortgage broker should be able to adequately explain that a home loan remortgage can take anywhere from a few days to longer than six weeks depending on the individual situation.
A home loan remortgage allows homeowners to move a mortgage for an existing property to a new mortgage broker. Remortgaging is a great option for homeowners who are reaching the end of an existing mortgage agreement, looking to build equity in their existing property, or are interested in paying off their mortgage quickly.
Remortgaging can result in a wide variety of both pros and cons for a homeowner, so it is essential for a mortgage broker to have an adequate understanding of how this process can affect their clients.
Pros of Remortgaging
- Switching to a home loan type that works best with the homeowner’s financial responsibilities and capabilities
- Obtaining access to the equity a homeowner has accrued in their existing property and using it to finance a wide variety of expenses, including home renovations
- Benefitting from new home loan features like a mortgage offset account or redraw facilities
- Obtaining a lowered interest rate which can result in reduced monthly mortgage repayments and save a homeowner money in the long run
- The potential of reducing the amount of time it takes a homeowner to pay their mortgage off in full
Cons of Remortgaging
- A homeowner who has decided to remortgage their home loan has the potential of facing fees and being required to pay for Lenders Mortgage Insurance (LMI), which can drastically reduce the amount of money being saved through remortgaging
If a client is interested in remortgaging their current home loan agreement, they should take a look at the Mortgage Street Mortgage Switching Calculator to learn more.