With historically low interest rates and increased competition across the home loan industry, lenders are keen to get your business.
Refinancing your mortgage may therefore be a relatively simple way to save thousands and get a better deal on your home loan.
What is refinancing?
Refinancing is essentially moving from your existing home loan to a new home loan. The most common reasons people refinance are to get better interest rates, access to more or improved loan features and to access equity.
Make the call
A great place to start is by calling a Above and Beyond Finance. We can compare hundreds of loan options across both bank and non-bank lenders to find a loan that meets your needs – saving you time and money. We can also negotiate with your current lender to see if they can offer you a better deal without the need to refinance, at no cost to you.
Reviewing your options
Once we know where you stand with your current lender, it’s time to do some homework. You’ll want to find out if you can get a better rate – or more suitable loan conditions – elsewhere. Remember, it’s not just the ‘big four’ banks; there are lots of smaller banks and non-bank lenders out there.
Our brokers can help you identify the best loans for your circumstances, negotiate with lenders on your behalf, and explain home loans that have features that might be important to you.
For example; if you want more flexibility in your loan, we might suggest switching to a mortgage that lets you make unlimited additional repayments, or a loan that has a redraw facility and an offset account. Alternatively, you might want to stick with your current loan but access your equity for an investment property.
Submitting the application
Our brokers look after all the paperwork and handle the lodgement of the application.
Prior to submission our brokers are dedicated to making sure you understand:
- Features of the new loan, such as a redraw facility or offset account
- The interest rate of the new loan
- What your repayments will be on the new loan
- All fees and charges associated with refinancing, including exit fees, start-up fees, new loan establishment fees and settlement fees (if any)
- Any applicable government charges.
Approval
Once your application is approved, you will receive a letter of offer and contract for the new loan. After signing the contract, you will reach settlement. Your new home loan is then drawn down, which means the funds from your new loan are used to pay off your current home loan.
The Discharge of Mortgage document will be registered with the Land Titles Office for you. Your new lender will lodge a Discharge of Mortgage document with the Land Titles Office. From here you can start making repayments on your new loan. Don’t let the approval process concern you – it may sound complicated, but Above and Beyond Finance takes care of everything for you!
It’s a good idea to review the mortgage market at least once a year, to make sure your home loan is still the best one for your needs.
Get In Touch
If you would like a free consultation regarding refinance options available to you or to see if we can get you a better rate with your current lender please leave your details in the ‘Contact Us’ bar, give us a call on 0434 748 446 OR email info@aboveandbeyondfinance.com.au