Many lenders reserve their most competitive rates for refinancers with equity in their property. That is why it’s always a good idea to review your home loan every few years, just to be sure you’re still getting a competitive deal!
Especially with the recent Reserve Bank of Australia announcements of increasing cash rates across Australia, the big banks are only set to increase interest rates dramatically over the next couple of months.
Plus, did you know that some banks will actually give you money to refinance your mortgage with them? So, you can benefit by switching to a lender that has a competitive interest rate and get a cash rebate for doing so.
We will compare hundreds of home loans with your current loan to make sure you’re getting the best deal.
Your broker will crunch the numbers and figure out whether you’ll be better off refinancing.
Once you’ve chosen you loan, we’ll do everything required to submit the loan and get it approved.
Compare these two options when refinancing your loan:
Our services are completely free for all home and investment loans. We get paid by the lenders for doing the work, collating your loan application and meeting with you. This work would otherwise be done by a bank manager or branch lender so you get access to the same rates as if you went to the lender directly.
The advantage for you is that unlike when dealing with one bank, we can help you work with a wider variety of lenders and get the best options that work for you choosing from our panel of over 30 banks and lenders!
Refinancing refers to the process of changing your existing home loan for a new one. You can refinance your loan with your current lender, or more commonly, you transfer your loan to a new bank.
When you take you a new home loan, you will use some or all of the funds from the new loan to pay out your current loan. Once you have paid off your existing loan, your mortgage with your current bank will be closed and you will start making repayments to your new lender. In order to refinance your loan you will need to complete the following steps:
Refinancing your home loan can open up a lot of different opportunities for you to better manage your finances, including:
Absolutely. Many borrowers refinance their loans at a higher loan amount. You can use this to fund other expenses, such as renovations, holidays, a new car, or debt consolidation.
You can typically borrow up to 80% of the value of your property. For example, if your property is worth $650,000 and your loan amount is $450,000, you could borrow up to an additional $70,000 (bringing your new loan amount up to $520,000 which is 80% of your property’s value).
It is possible to refinance your mortgage if you have bad credit, but it is a bit more difficult. It comes down to finding the right lender and demonstrating a promising outlook that you’re making a conscious effort to improve your credit rating.
We will need to get a copy of your credit file, work on trimming your debt, and work closely with a specialist lender to refinance your loan. You will also need to borrow less than 80% of the value of your home.
If the outstanding balance of your loan is higher than 80% of your property’s value you may need to pay LMI with your new lender. LMI is not transferable between lenders, so if you refinance to another lender, if your loan is not below 80%, it will be payable again. If your loan amount is below 80% you will not need to pay LMI again.