• Refinancing

    Refinance Home Loan

    Just as life changes, so do your circumstances and needs.

    When new jobs, significant birthdays, weddings and even disasters happen, we discover we are not really completely in charge of things. Sure we can plan ahead for likely events but there are always those things which surprise us. Often times it’s these unexpected events which have people looking for ways to release some cash flow.

    It could be that you secretly want to consolidate debt… or fund your home improvements… or simply see if you can reduce your costs.

    These are all worthy contenders so let’s look at the options available to you…

    You could:

    • Borrow money from a rich relative
    • Receive a windfall from the estate of a deceased long lost uncle
    • Win lotto
    • Or even wake up one morning with the idea to start facebook 

    But more than likely you are going to discover there are only two real possibilities.

    1. Either talk to a bank
    2. Or talk to a Mortgage Broker

    And if you want choice… choose a broker like Our Mortgage Options!

    But before you proceed… read this!

    • Refinancing… the Hidden Pitfalls
    • Home Loan Review
    • Benefits of Refinancing
    • What to Look for with Refinancing
    • What to Expect with the Refinancing Process
  • Refinancing Home Loan… the Hidden Pitfalls

    The truth is, from time to time most people with a home mortgage are tempted to refinance – especially when interest rates start dropping or increasing.

    But this raises an important question which few stop to think about!

    Will refinancing your home loan save you money in the long run? Or could it cost you a bucket load in break costs or other fees and charges?

    You know, you owe it to yourself and your family to make sure you get the best possible deal and avoid hidden home loan traps.

  • Home Loan Review

    Refinance Home Loan Calculators

    When it comes to working out whether or not to refinance (and then which type of home loan to refinance to), the smart thing to do is get the opinion of a licensed credit adviser (Mortgage Broker) to help you. After all, these are the people who do finance for breakfast, lunch and dinner (and in case you were wondering, we like playing with this stuff!)

    You see, many people think refinancing their home mortgage will instantly save them money. Now don’t get me wrong as it certainly might for some, but for others it may not be worth the effort because they could already have the best option!

    Home loan packages vary so much, knowing which mortgage is right for you can be confusing. So before you take that next step to refinance your mortgage, consider these important questions:

    1. Why do you want to refinance?
    2. What features do you have within your current mortgage?
    3. What are the early payout penalties and discharge costs?
    4. How much equity do you have?
    5. Does the new mortgage offer you the flexibility you’re looking for in a home loan?
    6. If you refinance, will you need to take out costly mortgage insurance?
    7. How much will the financial institution lend you on your home mortgage?

    There are a couple of key points here which you need to satisfy when thinking of refinancing. Knowing what your current home loan features are and whether there are early pay out and discharge costs, can have a big impact on your decision.

    Without this knowledge you could spend the time and effort to change to a mortgage which has the same or less features than what you already have. So being very clear on what you want to achieve will guide you…

    But basically, if there is no benefit to you; it’s a pointless exercise.

  • Benefits of Refinancing

    You see, refinancing your home loan does not pay off your loan for you – it simply re-arranges it so it is more manageable for you to service.

    Often when people refinance they extend the term of their loan to 30 years which lowers repayments but the debt still remains. And the longer the term of the loan the more interest you will pay.

    One of the more common reasons for refinancing is to consolidate other forms of debt. By combining all your credit cards and personal loans into a more manageable loan structure, you can in many cases also reduce the total cost of the interest.

    Sometimes consolidating debt is a great reason to refinance because it could save you a small fortune in loan interest depending on your circumstances.

    Please keep in mind however there is no right or wrong answer. What works for one person may not work for another which is why it’s so important to get the right advice.

    Before you make any decision to refinance your home loan, talk to us.

    Simply click here to make a no obligation appointment.

    An “Our Mortgage Options” Credit Adviser can help you to determine if refinancing is a worthwhile alternative for you and then guide you to which refinancing mortgage options will best suit your situation.

  • What to Look for with Refinancing

    Similar to our comments above in the home loan review section, it is prudent to be aware of the home loan features you have currently.

    But just as important is making yourself aware of features in the loan which benefit you most. As time passes, mortgage conditions and features change depending on the buoyancy of the property market and the ease of cash flow.

    The conditions today may have improved compared to immediately after the GFC for instance.

    Our Mortgage Options make it our business to discover the nuances within the financial institutions. We research and decipher every little characteristic of a lender’s product to understand the implications it will have on you. Not just at the time of signing the contract, but ongoing into the future as well.

    We have your vested interests at heart and are only interested in the best possible outcome for you and your family.

  • What to Expect with the Refinancing Process

    Home Loan Refinancing Process

    It goes like this:

         1. Interview

    We meet and discuss your needs, present the most likely loan of best fit and then if all is good, we start the application process.

         2. Loan Application Process

    Your loan application is lodged with the lender along with all required supporting documents. A confirmation receipt is usually received from the lender within 24 hours.

         3. Conditional Approval

    If the lender is happy, within 2 – 3 days, we receive conditional approval from them. This triggers property valuations if required and any outstanding information will be requested.

         4. Valuation Reports

    Subject to property access, valuation reports will arrive within 3 days.

         5. Unconditional Approval

    Once the lender receives satisfactory valuations, unconditional (full) approval is given. We then let you know you are approved.

         6. Mortgage Documents

    The lender will then send you a copy of the mortgage documents within 5 days. Once you receive them, give us a call to let us know, sign where indicated and return them to the lender.

         7. Loan Settlement

    Between 2 – 3 days after you have returned the mortgage documents, the lender will liaise with your existing lender to arrange the refinance. There may be a further delay at this point while your existing lender prepares to discharge their mortgage and arrange settlement.

         8. Congratulations

    And that’s it! Break out the bubbly and toast your new mortgage!