Refinance Home Loans
Save money on your home loan with better rates, debt consolidation, and flexible terms. Let us calculate what you could save by refinancing your home loan.
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Your Trusted Partner for Refinancing
Refinancing your home loan can save you thousands of dollars and provide better financial flexibility. Our team is dedicated to finding the best refinancing options for your unique situation, whether you want to lower your interest rate, consolidate debt, or access better loan features.
- Expert guidance on loan selection and application
- Comprehensive client-focused services for successful refinancing
- Leveraging our wide network of lenders for your advantage
- Ongoing support throughout the refinancing process
What is it?
What is Refinancing?
When a loan is refinanced, you're replacing the original loan with a new one in its place. This new loan could have better borrowing terms in relation to APR or length of time to repay the note.
Another way of refinancing the loan would be to use a different lender to grant the new loan in place of the original one. Refinancing should be the solution to saving money off of your monthly debt repayments, by way of a cheaper product or a structure that may be more suitable for your needs.
Benefits
Reasons to Refinance Your Loan
Pay Less Interest
You can find better borrowing rates when you refinance a loan. For instance, you can lower your APR rate to get better terms and reduce interest payable on your repayments.
Increase Your Borrowing Amount
You can find a higher borrowing limit with a refinance loan from your original lender or with a new one, giving you more financial flexibility.
Debt Consolidation
You can round up multiple smaller debts into one large refinanced loan to possibly get a lower overall APR on what you owe. Most personal debts are repaid at a higher interest rate than a home loan.
Get a Package Deal
Switching all of your loans and banking business to one institution can save you money on loans and discounts on banking services such as checking and credit cards.
Restructure The Terms
Instead of paying on both principal and interest when you make your payments, you can switch to interest-only payments and pay the principal off with a lump sum payment at the end.
Access Better Features
Switch from a fixed rate to a variable rate (or vice versa), apply for package loan benefits, or add a linked offset account to your loan.
Considerations
What to Look For When Refinancing
Prior Approval Considerations
A lot can happen between your initial loan approval and your application for a loan refinance. You may have taken on more debt, your income might have changed, or you may have missed payments on your original loan. These situations all come into play when a lender is looking over your creditworthiness.
Hidden Costs
Some lenders have penalties for refinancing your loan, especially if you're going with a new lender. Always review your loan contract to identify these fees before refinancing. The costs to refinance can range from $600 to $1,000 and typically include discharge fees, state revenue office fees, and new lender setup fees.
Interest Rate Obsession
Many times, lower interest rates will come with additional charges and fees during the life of the loan. Banks have to make up the cost on losing interest, and these fees are one way they do this. Make sure to consider the total cost, not just the interest rate.
Professional Advice
Make sure you get advice from our Mortgage Brokers before refinancing your home loan or switching lenders, as we can help you determine if refinancing is right for you and look at your individual situation to determine if there is a benefit.
Options
Exploring Different Refinancing Options
Variable to Fixed Rate
Transition from a variable-rate loan to a fixed-rate loan. Variable-rate loans often offer lower initial rates but can fluctuate over time. Fixed-rate loans provide stability and predictability, as your interest rate remains constant over a set period.
Making the switch to a fixed-rate loan can be advantageous, particularly when interest rates are expected to rise. This allows you to lock in a low rate for a specified term, making budgeting easier.
Shorter-Term Loans
Opting for a shorter-term loan during refinancing can bring multiple benefits. Shorter-term loans typically come with lower interest rates compared to their long-term counterparts, meaning you'll pay less in total interest over the life of the loan.
Choosing a shorter-term loan can fast-track your journey to being mortgage-free and build equity in your property quicker.
Interest-Only Loans
Interest-only loans can be attractive due to their lower initial repayments, as you're only required to pay off the interest and not the principal. However, once the interest-only period ends, your repayments will increase significantly.
If you're considering refinancing an interest-only loan, it's crucial to evaluate your financial capacity to meet the increased repayments when the time comes.
SMSF Refinancing
Self-Managed Super Fund refinancing has long been viewed as a tedious and expensive task, but with far cheaper rates on offer and our SMSF experts, it should be on your to-do list.
With the assistance of our specialist Mortgage Brokers, there could be thousands of dollars which can be saved and reinvested back into superannuation.
The Process
Our Refinancing Process
Assessing Your Position
We meticulously review your financial status, considering your income, existing loans, and overall financial goals to determine the most appropriate refinancing options.
Choosing the Right Product
We leverage our expertise and extensive network of over 100 different lenders to pinpoint a loan product that aligns with your unique needs, whether you aim to lower your interest rates, alter your loan term, or consolidate your debt.
Managing the Process
We handle all the necessary documentation, liaise with lenders on your behalf, and ensure the process is conducted promptly and efficiently, allowing for a smooth transition to your new refinanced loan.
Overcoming Challenges
We work with you to understand your credit history, offer advice on credit repair, and connect you with suitable lenders who are more flexible with credit policies, helping you secure better loan terms despite credit challenges.
Costs
Refinancing Costs & Considerations
A refinance could be as simple as a straight home loan for home loan swap, or it could be more complicated involving further debt consolidation, a re-structure, or an increase to an existing loan to free-up cash to spend elsewhere.
- Outgoing lender's discharge fee: Charged by your current lender
- State revenue office fees: For new mortgage registration and mortgage discharge
- New lender's setup & settlement fees: Vary by lender
- Lenders Mortgage Insurance (LMI): May be required if your loan-to-value ratio is over 80%
- Legal and conveyancing fees: For processing the refinance
The costs to refinance can range from $600 to $1,000, but the potential savings often far outweigh these costs.
FAQs
Frequently Asked Questions
How long does it take to refinance a home loan in Australia?
Refinancing a home loan in Australia typically takes between 30 to 45 days, but the exact timeframe can vary depending on your lender and individual circumstances.
What are the benefits of refinancing to a shorter-term loan?
Refinancing to a shorter-term loan can save you money in interest payments over time and enable faster equity build-up, though it can increase your monthly repayments.
Can I refinance if I have an interest-only loan?
Yes, you can refinance an interest-only loan; however, the suitability depends on your financial goals, as switching to a principal and interest loan may increase your repayments.
Can I refinance a home loan with a different lender?
Yes, you can refinance with a different lender. This can often help secure a lower interest rate or better loan features.
What is Lenders Mortgage Insurance (LMI) and will I have to pay it again if I refinance?
LMI protects lenders in case you default on your loan. If you refinance and your loan-to-value ratio (LVR) is over 80%, you may need to pay LMI again.
Can I refinance my home loan if I have bad credit?
Refinancing with bad credit can be challenging, but not impossible. Some lenders specialise in bad credit refinancing, but the rates may be higher.
Ready to Achieve Your Property Goals?
We're proudly trusted by over 100+ clients across Salisbury and Adelaide. Whether you're buying your first home, refinancing, or investing, we're here to help you secure the best mortgage solution for your needs.