So you want to refinance?

There are plenty of reasons why one would think of refinancing and if done correctly you can potentially save a lot of money!

There are a few different types of refinancing so you should be aware of how it works.

Are your home loan repayments too high? Your personal circumstances may have changed? Do you need cash to pay for a child’s education? It’s possible some other major life event has come and blindsided you or maybe you just want to see if you can refinance for the sake of financial wellbeing?

It’s always a good idea to check your motivation for wanting to refinance and make sure it’s a good time to do so.

Contact me for a free ‘no strings attached’ consultation.

Once you’re sure you want to refinance it’s time to do the following.

Explore costs – Look at the current cost of your loan and then research if you can get a better deal. Are there any hidden fees or upfront costs involved in exiting your current mortgage loan?

Choose the right loan – Once you’ve evaluated your current loan and decided you’re ready to refinance it’s time to look for a new one. Make sure you know what features you want in your new mortgage and get in touch with your mortgage broker to make sure these are met.

Hint: Ask your current lender if they can provide a better deal for refinancing before looking externally.

Refinance application – Contact your mortgage broker to get the refinancing application process started. The application process should be similar to when you applied for your original loan.

Inform lender – If you’re changing lenders you’ll need to inform your current lender so they can forward the necessary documents to the new lender. We can do that on your behalf.

Pre-approve finances – Your lender should take between 3-14 days to process your refinance application.

Valuation – When you refinance you’ll need to get your property valued. The lender organises this.

Financial Approval – At this point, your lender will advise you in writing of your loan approval – this is generally called formal or unconditional finance approval. Your broker or lender will then instruct a solicitor to prepare the loan documents on their behalf.

Legal binding documents – The loan documents will then be sent to your solicitor for review. Once they have been reviewed and approved you will need to sign them.

Arrange settlement – Your lender will arrange both settlement of your old loan and the establishment of your new loan. This involves an exchange of titles and the bank’s registration of the mortgage over your property. This is when the actual funds are disbursed to pay out your old home loan.

If everything goes according to plan, you should be able to get from application to settlement within a couple of weeks.

Remember it’s always a good idea to do your own research, shop around and crunch some numbers! If you need any help doing so please book a free ‘no strings attached’ consultation with me.

I’d be more than happy to help you navigate the sometimes confusing world of finance and save some money!