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Easy refinancing for a better deal on your home loan

With historically low interest rates and increased competition across the home loan industry, lenders are keen to get your business.

When you first took out a home loan, you probably paid very close attention to interest rates. Over time 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, or to consolidate several debts into one mortgage.

When you refinance, you can stay with your current lender – which can reduce hassle if you do all of your banking with the same institution – or switch to a new one.

Make the call

A great place to start is by calling a mortgage broker. A broker 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.

Review your options

Once you 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.

Your broker 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.

If you want more flexibility in your loan, for example, they 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.

After you’ve decided what you want from a new home loan, your broker will review your financial situation to estimate the amount you can borrow.

Submit your application

Your broker usually collates all the paperwork and handles lodgement.

Make sure the terms of the loan have been explained to you, and ask questions if anything is unclear. You should understand:

  • the length of the new loan
  • 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
  • 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 if you’re using a broker it basically happens in the background.

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. When you do this, consider consulting with a broker so you make an informed decision.

MAKE us your business partner.  Whether you are buying property, business or equipment, MAKE Finance Group will provide the finance solutions and advice you need. Call us today on 02 6021 6600

This article provides general information only and may not reflect the publisher’s opinion. None of the authors, the publisher or their employees are liable for any inaccuracies, errors or omissions in the publication or any change to information in the publication. This publication or any part of it may be reproduced only with the publisher’s prior permission. It was prepared without taking into account your objectives, financial situation or needs. Please consult your financial adviser, broker or accountant before acting on information in this publication.

Make it happen

The staff at MAKE Finance Group are experienced and dedicated to providing our clients with exceptional levels of advice and service.

As a full service finance broker, we can save you time and stress as we negotiate with Banks and Financiers on your behalf. Whether it is asset or equipment finance, business finance and advice or even a home loan, we will go to the market on your behalf and find the best possible deal available.

Let us worry about the financials, as we make it happen for you.

Why Partner with Us?

The staff at MAKE Finance Group are experienced and dedicated to providing our clients with exceptional levels of advice and service.

MAKE Finance Group holds sought after commercial lending accreditations and access to a substantial panel of lenders for both Equipment and Business Finance.

As a finance broker MAKE Finance Group saves you time and stress as we negotiate with Banks and Financiers on your behalf. This allows you to keep focused on your business while we do the finance work.

This ensures you receive the best offers with the objective of saving money and increasing profitability.

Testimonials

Here is what a couple of our clients have said about MAKE Finance Group.
  • Geoff at MAKE Finance Group made the process of purchasing an investment property a seamless process. Thanks for your patience Geoff. I would highly recommend Geoff and his team at MAKE for all your finance needs. Cathy, Warrnambool

  • Geoff and the team at MAKE Finance were unbelievably helpful when we needed to refinance our business loan. After a stressful and confusing ordeal with our existing lender, Geoff made re-financing so easy, and it tool very little work from our end to sort everything out. We are so happy with everything sorted and not having to worry about our finance arrangements. We would encourage anyone with any financing needs to go and see Geoff and the team at MAKE Finance, thanks Geoff! Philip and Jenni, Holbrook

  • Thank you to the team at MAKE Finance Group, for helping me purchase my first truck. I cannot thank them enough as they went above and beyond all my expectations and made the whole process easy and stress free, I would highly recommend them to anyone. Rob, Canberra

  • Applying for a business loan (direct through a Bank) was becoming a stressful and difficult task for us as everything had to be discussed over the phone followed by numerous paperwork. Geoff at MAKE Finance Group was our savior. Your personalised service made the application for our business loan & business vehicle loan so easy. We now operate a very successful business & we could not have done this without you. We love your work! Lloyd & Kristy Franchisee of Jim’s Mowing Wodonga East

  • “MAKE Finance Group were an absolute pleasure to deal with. Right from the very beginning, even when we were just asking questions as to how home loans work and how much we could afford, they made the process incredibly easy and put everything into terms that we could understand. There’s a lot involved with buying your first home, but it felt effortless with the superb help from both Jess & Geoff. MAKE Finance Group definitely come highly recommend from us – thanks guys!” Sophie & Zach, Albury

  • “Buying a new car was a big deal for me as I had a very strong love for my only car of 10 years.  I approached MAKE Finance Group to help me source a loan for my new car, and they made me feel 100% positive about making the change, as the process that they followed to obtain the loan was flawless. They came to me which I hugely appreciated, everything was in order and all follow ups and questions were answered without hesitation. I cannot recommend them enough for their professional and friendly service.” Stephanie, Albury

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