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A home loan refinance is a wise way to ensure you have the most cost effective solution and financial structure in place to suit your needs at that point in your life.
With the introduction of more and more lending institutions the home loan options available to you are many and varied so it pays to do some research on which option may suit your needs best.
Refinancing your home loan is not always driven by a more competitive interest rate, other reasons that you may look at to refinance is that of what level of service has your existing home loan lender provided you, this is becoming a more common reason for people to look at other lending institutions aside from the potential to save based on a more competitive interest rate.
A refinance should be considered as a home loan health check and should be reviewed on a regular basis to ensure you're receiving the very best finance solution for your needs.
On that note we invite you to contact us and have one of our consultants discuss your options with regard refinancing.
We have also listed below some key points when it comes to a home loan refinance for your benefit so please browse through this section:
How can I benefit from a home loan refinance?
We have already touched on some of the benefits of a home loan refinance and noted that some of the benefits are not only in the form of lowering your repayments, so we have summarised below for you some questions you should ask yourself and the resulting benefit of a home loan refinance based on some or all of these questions:
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Am I paying too much on my current home loan? |
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What fees am I paying on a monthly or yearly basis and how much is the total cost on top of my home loan repayments? |
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Have my circumstances changed and do I require a line of credit home loan for investment purposes? |
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Should I consider a fixed home loan interest rate as I’m nervous about interest rates rising? |
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Can I move to a full doc home loan as when I initially applied I obtained a lo doc home loan? |
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Can I consolidate other loans into my home loan to lower my repayments through a refinance? |
There are resulting benefits from a home loan refinance and some of these questions above may apply to you so if you believe that you may benefit from a refinance then contact us and have a chat with one of our consultants.
What should I consider from a home loan refinance?
If you have been thinking about refinancing then you need to consider what it is you want to achieve by doing so. Is it simply a better interest rate or the consolidation of other debts into your home loan?
These are some of the easier questions, what many people don't consider are other aspects of a refinance such as that of break fees which may apply to your existing facility.
Break fees can and do apply to the majority of home loans in the market, some vary in amount and time that the break fee applies. Some examples of break fees are below:
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Home Loan break fees can apply from 1 to 5 years or more |
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Some break fees are staggered such as 1% of the loan amount in the first year and then dropping to 0.75% of the home loan amount in the second year |
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Other lending institutions apply the break fee to the loan amount at the time of discharge while others apply it on the initial home loan amount |
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Some lending institutions charge a flat fee for break costs and a discharge fee for example |
Depending on the potential interest savings it may or may not be worthwhile pursuing a home loan refinance.
Why not contact us and have a chat to one of our consultants and they can assist you with the potential interest savings and other options which you may not have considered.
This may help you in making a more informed decision about a refinance.
How long should it take for a home loan refinance?
The timeframe it takes for a home loan refinance will depend on a few factors but generally speaking a refinance should take between 3-5 weeks from initial application through to settlement.
Some of the factors which may impact the time it takes for a refinance to settle are summarised below:
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The home loan provider may require more information from you |
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The valuation may take additional time if the location of the property is out of the way |
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There may be delays from the home loan provider you are moving away from when it comes time to discharge the existing home loan |
These are some of the main factors which may delay the refinance process and AussieWise is here to assist you in making your refinance as smooth as possible as we manage your expectations and prepare you from the very beginning with what is needed.
Contact us to find out more about a refinance and how to best approach the home loan refinance process.
What can AussieWise do to help with your home loan refinance?
What AussieWise can do is help you with your refinance by firstly sourcing the most appropriate option based on your needs and then guiding you every step of the way throughout the process.
We are here to help you in any way we can and will answer your questions thoroughly and promptly so you are informed from beginning to end. Why not contact us and see how we can help you.
Contact us and have a chat to one of our consultants.
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