How To REFINANCE A HOME LOAN SYDNEY, AUSTRALIA

home loan interest rates australia

What is a home loan refinance?

Refinance your home loan involves transferring the balance of your current mortgage from one lender to another. This process allows you to secure a new home loan with a different lender and choose a new home loan product that suits you better. 

It’s essential to do thorough research to find a home loan with a lower annual interest rate, fewer fees, or better features than your current lender. You may also choose to switch from a variable interest rate to a fixed rate loan or divide your balance between two different interest rate types. 

Refinancing your home loan can also come with incentives such as cash back on your new home loan depending on which lender or bank you switch to. If you want to know more about how to refinance a home loan, read on.

5 SIMPLE STEPS TO REFINANCING YOUR HOME LOAN

home loan interest rates australia

Assess Your Current Situation:

Start by evaluating your mortgage terms, interest rates, and monthly payments. Determine your financial goals and whether refinancing aligns with them. Look for potential savings and benefits such as lower interest rates, reduced monthly payments, or accessing equity.

Research and Compare Lenders:

Conduct thorough research to explore various lenders and loan products available. Compare interest rates, fees, terms, and customer reviews. Look for lenders that specialize in refinance home loans and offer competitive rates and favorable terms.

home loan refinance calculator
home loan interest rates australia

Gather Necessary Documents:

Prepare all the required documentation for the refinancing application process. This typically includes proof of income, employment history, asset information, current loan details, and property documents. Organizing these documents in advance can streamline the application process.

Submit Your Application:

Once you’ve chosen a lender and gathered all necessary documents, submit your refinancing application. Be prepared to provide additional information or documentation if requested by the lender. Stay in communication with your lender throughout the process to ensure a smooth and efficient application review.

home loan refinance calculator
home loan interest rates australia

Close Your Refinance Loan:

After your application is approved, review the terms and conditions of the new loan carefully. Schedule a closing date with your lender and sign the necessary paperwork. Once the loan is closed, your new lender will pay off your existing mortgage, and you’ll begin making payments according to the terms of your refinanced loan.

Why refinance your home loan?

Refinancing your home loan can provide several benefits, including:

A lower interest rate can save you money on your monthly repayments and over the life of the loan. A lower interest rate can also provide flexibility in your monthly budget and help you manage your finances better.

Avoiding a high revert rate, which can occur when a fixed-rate or introductory-period loan reverts to a standard variable interest rate that is often higher than the market average. This can save you money in the long run and prevent unexpected increases in your monthly repayments.

Access to more loan features, such as an offset account, redraw facility, loan splitting, and the ability to make additional repayments. These features can help you manage your loan better and save money on interest over the life of the loan.

Debt consolidation, allows you to combine multiple loans with higher interest rates into one loan with a lower interest rate. This can simplify your finances and potentially save you money over the life of the loan. However, it’s important to note that debt consolidation may result in paying more interest over the life of the loan.

Adaptability and flexibility, allow you to reassess your loan term and repayment frequency, potentially saving you money over the life of the loan. This can also provide peace of mind and help you plan your finances better.

When considering refinance, it’s important to compare home loans and understand the process, including the costs associated with refinancing. It’s also important to avoid common refinancing mistakes, such as extending the loan term too long or not considering the impact of refinancing on your credit score.

Refinancing can be beneficial for various reasons, such as obtaining a lower interest rate, consolidating debt, or accessing better loan features. However, it’s important to carefully consider your financial situation and goals before deciding.

Some refinancing options include refinancing for a lower interest rate, a longer loan term, a shorter loan term, a better loan feature, a lower monthly repayment, a fixed interest rate, or a variable interest rate. It’s important to compare home loans and understand the pros and cons of each option before making a decision.

refinance your home loan can provide several benefits, including a lower interest rate, avoiding a high revert rate, access to more loan features, debt consolidation, and adaptability and flexibility. However, it’s important to carefully consider your financial situation and goals before deciding and avoid common refinancing mistakes.

The costs of refinance a home loan

How much does it cost to refinance a home loan?

Refinancing will never be free, but the costs will vary depending on the specificities of your financial situation and what your refinance looks like.

Some common costs may include:

Discharge fee or settlement fee. An administration fee that covers your current lender’s costs.

Application fees. An upfront fee for processing and assessing a new loan application.

Valuation fee. A fee that covers the costs of valuing your property.

Mortgage registration fee. The cost for registering the lender’s mortgage on your property’s title.

LMI. This is generally only applicable for loans with an LVR greater than 80%. LMI protects the lender, not you if you can’t afford to make your fortnightly or monthly repayments.

Ongoing fees. Regular administration and account-keeping fees that can be annual or monthly. These may be higher if you have a ‘package’ home loan that includes a credit card or offset account.

Break or exit fees. A penalty fee may be charged by your current lender for terminating a fixed-rate loan contract early (i.e. before the end of the stipulated fixed-rate period). Not applicable for home loans with variable interest rates, but may apply to the fixed rate component of a split-rate home loan.

Additional costs. These may include costs for title searches, surveys, and more.

Check the terms and conditions of your home loan for a breakdown of the charges that may be applicable.

FAQs

Frequently Asked Questions

Home loan refinance involves transferring the balance of your current mortgage from one lender to another to secure a new home loan with better terms.

Refinancing can offer benefits such as lower interest rates, access to better loan features, debt consolidation, and increased flexibility in managing your finances.

Common costs of refinancing include discharge/settlement fees, application fees, valuation fees, mortgage registration fees, LMI (if applicable), ongoing fees, break/exit fees, and additional costs like title searches or surveys.

Refinancing typically involves assessing your current situation, researching and comparing lenders, gathering necessary documents, submitting an application, and closing the refinance loan after approval.

Benefits of refinancing include potential savings on monthly repayments and over the loan term, avoiding high revert rates, accessing more loan features, consolidating debt, and gaining adaptability and flexibility in managing your loan.

Customers Reviews on GMB

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Excellent
Based on 24 reviews
Ayeisha Singh
2022-05-07
Our experience with Kandid was excellent service, very knowledgeable proprietor who delivered in a short time and was through throughout the process. Highly recommended thanks guys!
Pankaj Saini
2022-04-20
Narender and his team were fantastic to deal with and walked me and my wife through the whole process of refinancing. The whole process was very smooth, with no dramas and that is all thanks to the team’s diligent work before applying. We did get a good rate and honestly were surprised how easy and straightforward they made it for us. These guys are in a different league compared to our previous mortgage brokers. I knew I was dealing with someone very experienced from day one, their knowledge was second to none, attention to detail was on point and we are so happy with everything they had done for us. Thank you, guys, it’s been a great experience and I highly recommend Kandid loans as a mortgage broker.
renu kang
2022-04-19
I have an excellent experience with Narender from Kandid financial services, he has made whole process smooth which could have been stressful . His responsiveness , knowledge and experience kept me stress free during this time . I received best service from him , Thank you Narender . I am looking forward for my investment loan with them
antidote.mani mani
2022-04-05
Highly Recommended. Excellent communication throughout the process.
JASPREET SINGH
2021-12-12
One of the best in the market. Someone who just wants YOU to benefit. Based on my personal experience recently while I was looking to buy our first property, I got in touch with Narender. He spent his valuable time to ensure I understand how I can profit in today’s market. His valuable advice has made me understand what I need and finally I got what I wanted. A google review is the least I could do for him. I strongly recommend him.
Sunita chhabra
2021-11-01
Working with Narinder for our loan was a breeze! He is very knowledgeable, easily accessible and willing to go above and beyond. In addition to his professionalism, he is also an incredibly kind and fun person to work with. Can not recommend him highly enough!
Shilpa Dhar
2021-10-26
Absolutely amazed by the prompt service provided by the Team Kandid. Knowledgeable and on time advise helped us secure our dream project.Well done guys keep up the good work!!!
ron Sharma
2021-10-26
Very helpful and determined, did not let me stress one bit and took it upon himself to get the job done. Also very easy to contact and speak to
Bikramjeet Attly
2021-10-21
Very happy dealing with the Kandid team, always helpful and thinking your benefit first and not trying to somehow sell some loan product. We have dealt twice with them and always got quality and quick response with extensive guidance and value in the loan deals. Happily recommend them !
Sumit Adlakha
2021-10-21
Narender has been fantastic to deal with, he is highly professional, extremely knowledgeable and he ensured we understood the process and we were comfortable with every steps of the process.He kept us updated throughout the process and found us absolute best deal available on the market at that time. He made the whole experience very easy. Thank you so much Narender! I will highly recommend him to our family and friends. All the best mate:) cheers Sumit

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