Refinancing a Home Loan: The Process Explained:
When you’re busy with life, refinancing can seem like a hassle. However, with a mortgage broker to guide you through the process, it doesn’t have to be!
Refinancing may allow you to switch to a more competitive home loan, thereby potentially saving you money in interest.
It can also help you achieve other goals, like using different finance options to renovate your property or consolidating your debt and paying it off more efficiently. You may even consider refinancing to access equity to buy an investment property or another big-ticket item like a pool.
Here are the steps involved in the refinancing process:
Step 1: Work out your financial goals
Do you want to find a loan with a lower interest rate? Perhaps you’d like to explore some of the interest-saving loan features that are available nowadays, like offset accounts and redraw facilities?
It’s important to understand what your financial goals are so that we can help you to access the finance you need to achieve them.
Step 2: Compare home loan options
Next, it’s time to do some research.
Trying to understand all the different home loan options available and consulting with different lenders can be time-consuming and overwhelming. Instead, get us to do the hard yards for you.
We can explain which home loans may be suitable and help you narrow down your options.
Step 3: Submit your loan application
Once you’ve decided which home loan is right for you, we’ll take care of your mortgage application.
Just like when you applied for your original loan, you’ll need to supply certain documents. These usually include identification, proof of income, home loan statements, and records of living expenses, liabilities and assets.
The new lender may also require a property valuation. This helps them to determine how much they are willing to lend you.
Step 4: Discharge your existing loan and settle your new one
When your chosen lender approves your new loan, we will let your current lender know you plan to discharge, or pay out, your existing loan.
We’ll keep you informed throughout the settlement process and let you know when your new lender has paid out your old loan.
Step 5: Start making repayments
After settlement, you’ll receive documentation explaining the ins and outs of your new loan. Then, it’s time to start making repayments.
All up, for most cases the process of refinancing usually takes anywhere from four to eight weeks. The timeline depends on the lender, how quickly you submit the required paperwork and the strength of your application. Some lenders may offer a fast-tracked service.
Ready to get started?
As you can see, refinancing may not be as hard you think. If you’re interested in comparing what loan options are available for you, get in touch with us today.
4 Steps to take now for buying your first home in 2024:
Thinking about purchasing your own home this year? How exciting!
The dream of homeownership is facing some new challenges, especially for those in their twenties. Recent data from the Australian Institute of Health and Welfare shows the rate of young adults owning a home dropped from 50% in 1971 to only 36% in the latest 2021 Census. Even for those aged 30–34, it fell from 64% to 60%.
But the dream of having your own home is still very much alive!
Here are 4 steps that you can take now, to put you on the path to buying your future home:
1. Start saving early and be smart with money
Begin your journey to owning a home by saving money wisely. Consider following the 50:30:20 rule – put half your income toward essential items like food and rent, then split the rest between fun stuff (holidays, eating out) and savings. Following this rule has the potential to help you save consistently, no matter how much you make.
Build good money habits with simple changes, like cooking at home instead of ordering takeout, biking to work to save on petrol, or choosing home get-togethers over expensive outings to save up for your home deposit!
Learn more on how you can save for your deposit here.
2. Use credit wisely to avoid debt
Credit cards can be handy, but don’t go overboard. Missing payments or racking up too much debt not only messes with your finances but also hurts your credit score. A bad credit score can make it tough to get the right home loan when you find your dream home!
3. Consider all the costs of buying a home
Buying your first home means dealing with more costs than just your mortgage. Think about all the associated costs such as:
· Stamp duty: Stamp duty is a one-off state government tax that’s based on the purchase price of the property.
· Legal and conveyancing fees: Get a conveyancer, specialised in real estate legalities, to manage paperwork, including the Deed of Transfer. They can address inquiries about property zoning and technical details
· House inspection and cleaning costs: Once you pick a home, hire professionals to check its condition. This helps you know what maintenance it needs and how much it might cost. Don’t forget the expenses for cleaning and fixing up the property. A cheap deal might turn into a money pit if you go for a fixer-upper!
4. Get help from a mortgage broker
As a mortgage broker, our role is to work closely with a panel of lenders — from the big banks, to the smaller lenders you may not be as familiar with — to ‘shop around’ in the home loan market on your behalf. But our job isn’t just about comparing home loans. We stay on top of market trends and changing lender requirements, so you can be confident in the recommendations we provide.
Even before you are ready to buy a home, we can offer valuable support by explaining the home buying process and working with you to ensure you achieve your property goals.
So, if you’re planning on making your home ownership dreams a reality this year, get in touch to team up with us today!