How to refinance a home loan
Your home loan will likely be one of the biggest financial commitments you’ll make in your life. So, you want to make sure you’re on the best interest rate possible, so you’re not paying more for your loan than you should.
But while you might have got a great deal a few years ago, there’s a good chance it’s not as competitive as it once was.
That’s because Australia’s mortgage market has dozens of lenders, each fighting hard to grow their loan book.
There are two ways lenders commonly do this.Read More
Seven other reasons you might want to refinance a home mortgage
For the right borrower, home loan refinancing can deliver significant benefits such as helping you:
- Become mortgage-free faster by switching to a loan with a shorter term
- Get a loan with better features, such as an offset account or redraw facility
- Change from a variable-rate loan to a fixed-rate loan (or vice versa)
- Consolidate several high-interest debts into one lower-rate debt
- Pull out equity in your property, so you can spend it on other things (such as a deposit for an investment property)
- Increase your borrowing power (if your financial situation has improved since you first took out the loan)
- Switch to a lender with better customer service
That said, refinancing isn’t always the right option for every borrower.Read More
How much does it cost to refinance a home mortgage?
Generally, you can expect to pay some or all of the following costs when you refinance a home mortgage:
- Discharge fees on your existing loan
- Break fees on your existing loan (if it’s fixed)
- Application fees for your new loan
- Mortgage registration and transfer fees for your new loan
- Valuation fees for your new loan
- Legal fees for your new loan
- Lender’s mortgage insurance premium (if you are borrowing more than 80% of the property’s value with your new loan)
So, as with any financial decision, it’s important to crunch the numbers to see if the benefits of refinancing outweigh the costs.
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Your step-by-step guide to refinancing your home loan
Refinancing your home loan can be a smart move under the right circumstances. But what exactly is the step-by-step process for refinancing a home loan?
Step 1: Review your current home loan
Pay particular attention to:
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- Your current interest rate
- Your ongoing or annual fees
- The amount of time left on your loan’s term
- How much it will cost to exit the loan
Step 2: Shop around so you can find the best refinance home loansRead More
How do you find the best refinance home loans?
If you are sold on the many potential benefits of refinancing a home mortgage, you are likely wondering how you can find the best refinance home loans.
After all, making sense of all your options in Australia’s crowded mortgage marketplace can be challenging and time-consuming.
You don’t just have to compare thousands of different loan products on the market; you also have to work out which lenders are most likely to approve someone in your financial position,
To make matters more complicated, lenders change their eligibility criteria regularly and use all sorts of jargon.Read More
