Refinancing your home loan

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As a home owner with a mortgage, chances are you’ve heard of the term ‘refinancing’. Refinancing involves reviewing your current mortgage, and potentially swapping your loan to another lender who can better meet your current needs, wants and circumstances.

Refinancing can also allow you to consolidate your debts or pay down your mortgage more quickly.

Another common reason borrowers look to refinance is so that they can access equity – the amount you’d get from selling your home after settling any associated loans, such as a mortgage on that property, and any other costs associated with the property. Depending on that amount, you may be able to access equity in the property without having to sell it, for example, to make home renovations or to buy an investment property.

However, refinancing is not suited to everyone. There are many different factors you will need to consider when thinking about refinancing a loan. Before you initiate an application to refinance, we will assess your needs and objectives as well as your current financial situation, ensure you can afford a different loan structure or other change to your mortgage, particularly if you have more than one property.

Are you looking to pay less interest?

Some people are savvy researchers and will want to take advantage of a lower interest rate from another lender should that be available to reduce repayments. If you aim for a lower interest rate, this could potentially save you a lot of money in the long term.

While saving money is often one of the biggest benefits of refinancing, it may not be as straightforward as that and careful consideration is required.

At this point, will need to find out about your existing loan, repayments and current loan structure. We also need to find out more about your current financial situation, including your income, any other current debts and about any assets you own.

The current value of the property is also taken into consideration. We have access to current data that will indicate what your property is likely to be worth and obtain the necessary reports for you to review.

We will then complete our assessment of your situation, source various loan options and figure out whether it’s worth it for you to refinance. Sometimes it’s not worth it if it’s only going to save a couple of hundred dollars a year, particularly when you take into consideration the exit and application fees involved. But if it’s going to save upward of $1,000 a year, refinancing might be a sensible approach.

In some cases, we can tell you if getting a lower interest rate from your current lender can be achieved without refinancing.

Do you want to change your loan type?

One of the risks of refinancing your home loan is that you may need to pay Lender’s Mortgage Insurance (LMI) * to your new lender. If switching your loan means you will need to pay LMI again, it may not be worth refinancing.

If you do decide to go down the refinancing path, working with us rather than going straight to a lender has advantages. We have access to loan options from a range of different lenders (over 25), and if there’s a better opportunity for you, we have access to it.

It is important to consider that when you take up a new home loan, it can incur exit fees and may not have all the features your existing home loan has.

Have your circumstances changed?

If you had a recent major life change such as a loss of income or a change in marital status, you might be looking to refinance.

If you want to refinance to lower lending costs to help you manage your monthly repayments, we can help negotiate with your current lender for a rate suitable to your current situation.

We can also help you look at alternate options to consolidate your personal loans and credit cards into the one loan. This could help you in lowering your monthly repayments, or help you keep your repayments on time and even save you interest in the long-term. We have access to many lenders and their products and have the expertise to help you through the refinance application process.

  • LMI protects the lender against potential loss.

(Photo by Milivoj Kuhar on Unsplash)

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Kristin Harris
Kristin Harris
22:36 10 Feb 21
Ryan made my refinance a breeze. He kept me completely up to date every step of the way. He was extremely responsive and very diligent. Ryan has great knowledge about all mortgage needs and I would highly recommend Ryan... for any mortgage or refinance needs.read more
Rabie Abou Fakher
Rabie Abou Fakher
09:16 07 Feb 21
If you are looking for an honest down to earth broker then you have found the one. Ryan has assisted us through our home loan application for the best part of 10 months. Ryan has explained things in an easy to... understand language, prompt reply to communication, genuine cares about his clients and most important of all caters to your individual needs. Finally thank you again for helping us and I will certainly deal with you again for future loans.read more
Elizabeth Lewis
Elizabeth Lewis
08:20 27 Jan 21
Ryan has been an excellent broker during the purchase of my first home. Always available for advice when needed, great and fast communication. His liaison between the bank and myself has been great. Thanks for all the... help Ryan.read more
John Luka
John Luka
06:11 14 Jan 21
Ryan His the best ever the best word to describe him when he do his job he do for him self not for the client he working hard he tried to make clients happy specially family like my family he did big miracle for us... after many broker advised we can’t get the home loan only Ryan he did for us I recommend him for every oneread more
Tony Bejjani
Tony Bejjani
05:46 14 Jan 21
Ive dealt with several brokers and never imagined an experience so pleasant and stress free . We got a fleet for our business with beyond exceptional service and superb rates . Ryan was the most knowledgeable person i... have dealt with and i cant recommend the team at Bspoke finance enough. We just moved into our dream home thanks to his amazing work . Thank-you from both tony and beam . Your magicread more
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