What Is Refinancing A Home Loan?
Refinancing your home loan is the process of moving your home loan from one bank or non-bank lender to another. By refinancing your home loan the lender who has the mortgage on your property also changes.
Why Refinance Home Loans?
There are a few reasons for deciding to refinance your home loan. The most common reason is to get a better interest rate, because a lower interest rate results in a lower home loan repayment. Lower repayments can improve your quality of life and/or help you pay your home off sooner.
Another common reason to refinance your home loan is to consolidate other debts that you are paying higher interest rates on. If you have a car loan, personal loan or credit cards, refinancing enables you to consolidate all these debts into one loan. This results in a lower interest rate and repayment.
What Rate Could You Refinance To?
Find out the best interest rates available to you.
How To Refinance Your Home Loan
The first step is to contact us. We will chat to you about what you are looking for, and work out which lenders offer the best interest rates and loan products that meet your needs. If you decide to go ahead and change lenders we handle the process from there. We will submit the application to your new lender with the supporting documents they require. Sometimes the lender will carry out a property valuation, depending on the loan value ratio.
Once your application is submitted, we follow up the new lender to provide you with your loan approval as soon as possible. Loan documents will be sent to you to sign, including a form called a discharge authority. It is very important that this form is returned as soon as possible. The discharge authority enables your new lender to act on your behalf, close your old loan and open the new one for you. The process to refinance home loan lenders usually takes around six weeks from enquiry to settlement.
The following documents are typically required to refinance your home loan;
- Council Rates Notice
- 6-12 months current home loan statements
- Evidence of your income
Depending on the LVR (loan to value ratio) you may also need to provide statements for any debts you want to consolidate. For example if you want to refinance to pay out the balance of your car loan, personal loan, credit cards or store cards.
Contact a Cash Back Mortgage Broker
Get started now to refinance your home loan or investment loan.
Is It Easy To Refinance A Mortgage?
It's not a difficult process to refinance a mortgage when you use a mortgage broker. A broker will help you find a new lender, loan and interest rate that meets your requirements. The broker will lodge your application and follow up the lender for your loan approval.
When you refinance home loan providers you don't need to deal with your current lender at all. Your new lender will handle refinancing your home loan without you needing to be involved. No awkward phone calls are required.
Are There Costs To Refinance?
When you refinance your outgoing lender will charge you a fee to discharge the mortgage and attend settlement. It will be listed in the loan documents you signed when you took out the loan. The amount varies between lenders but is typically a few hundred dollars. This fee can usually be added onto your new loan amount, so you don't pay it upfront. The savings you make on the loan with your new lender should quickly offset this cost.
How Long Does Refinancing Take?
The whole refinance process from enquiry to settlement usually takes around 6 weeks. Delays when you refinance loan providers only tend to occur for a few reasons. The first is if you delay supplying the documents you have been asked to provide, such as payslips. The second reason is if your outgoing lender isn't being cooperative, however this is less common since the banking royal commission was announced.
Have You Considered Negotiating With Your Current Lender?
We are going to give you some advice that no other broker or lender is likely to, but we're not your average brokers. The process to refinance is easy, however what if you could stay with your current lender on a better rate?
Contact us and have a chat about the current interest rates and deals around that you qualify for. Armed with that information why not call your current lender. Ask them if they will renegotiate your interest rate to retain you as a customer. Tell them the deal you can get through us and ask can they match it? If you have been making your repayments on time your current lender may offer to reduce your rate to keep your business.
If you decide you still want to move away from your current lender, or if they won't negotiate a good enough rate for you and you'd be better off with a new lender, we are happy to help you refinance. Our role is not to 'sell' you a new loan, we are here to assess your needs and recommend your best home finance options.
Do I Need A Refinance Mortgage Broker?
No you don't. There is no such thing as a specialist refinance home loan broker, or a refinance mortgage lender who only handles refinances. Any reputable home loan broker should be able to present you with a range of mortgage refinance options that meet your needs. All lenders on our panel can refinance your home loan if you meet their lending criteria. So if you decide to refinance your home loan rest assured the number of lenders you have to choose from won't be restricted.
Refinance Mortgage Rates
We are often asked if there are special rates that apply to refinancing a home loan. Refinance home loan rates are the same rates as for purchasing property. You are not restricted to applying for a specific type of loan. When you refinance your home loan you are treated as a 'new customer' as if your were purchasing a home. So you are able to apply for a variable or a fixed interest rate, and any introductory home loan rates on offer.
Find A Lower Interest Rate
Contact a Cash Back Mortgage Broker to find out about the best refinance rates available to you.