Refinance Loan Service

How Does Refinancing Work?

Often, clients are hesitant to refinance as they are worried that the process will be just as intense as getting the loan in the first place. This isn’t the case!

Once you find a mortgage broker in Launceston or locally in Hobart that suits your needs all you need to do is provide the requested information, and select a lender that your broker has proposed (we generally give our clients 3-5 different options). The broker will submit your application and communicate with you and your lender.

On settlement, your new lender will pay your old lender.

Why Should I Refinance My Loan?

Decrease Your Loan Repayments

By refinancing with a lower interest rate your repayments on your loan will decrease. This can save you tens of thousands of dollars over the lifetime of your loan.

Cash-Out For Renovations

Do you have the ick for your home, but don’t want to part ways? Many Australians move towards renovating. By refinancing you can access the equity in your home to fund the renovations.

Investment Down Payment

Are you looking at purchasing an investment property? Again, like renovating you can refinance your current home to access equity for a down payment for an investment property.

Consolidate Debts

Payout your credit card, car loan, personal loan under your home loan. Meaning you’re paying one interest rate, one repayment and one lot of fees and charges.

Unhappy With The Current Lender

You may be unhappy with your current lender for many reasons and wish for a change.

Change In Circumstances

Your circumstances before you originally may have applied for your loan have improved and therefore you may be wishing to refinance to a big four lender

We Assist You To Make Sure You Choose A Suitable Product

We won’t just choose the lowest interest rate for you, we will sit down with you and discuss your financial wishes for the future ie – wishing to purchase an investment property down the tracking, understanding that you may need to go as a guarantor in a few years, wanting to retire at a certain time.

We will also, run an analysis to ensure it is worth and beneficial for you to refinance your loan. If we cannot get a better result for you, we will always be upfront and tell you.

In summary, refinancing is a fantastic way to meet your financial needs with your mortgage(s), following changes within economic and personal factors.

However, it is important to be aware of the hidden costs, and brokers who will refinance your property when it won’t gain you any benefit.

Is There Anything I Should Look Out For When Refinancing?

Approval Procedure

Your credit score may have decreased from late/missed repayments. You may have a high debt-to-income ratio, your property may have devalued, or you may have had a change in income. All these factors can have an impact on you being approved with a new lender.

Cost of refinancing

There can be hidden costs when breaking contact with a lender, it is important to understand these before you go ahead with refinancing to avoid finding out later down the track and having to fork out additional funds. You can find these costs in your loan contract. There are several ways to reduce the costs involved including adding the fees and charges on top of your loan.

Interest Rates

Often low interest rates can be reflected with high fees and charges throughout the lifetime of the loan costing you more overall.

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