Refinancing

Refinance My Mortgage?
Lower rate/ more flexibility / Home equity / Buy a new car / undertake home improvements / Personal circumstances change Get a better interest rate / Raise money for investing.Mortgage refinance
Whether you wanting to renovate, consolidating debts, search for other rate options, raise funds for a purchase, change your rates or loan options, refinancing your existing loan may be the way to go.

The mortgage markets are ever changing which is why staying in touch with us on a regular basis is the smart thing to do. We are always more than happy to conduct a review or quick home loan health check on your current loan.

When To Refinance
The aim of refinancing your home loan is usually to save money, or to keep up with your changing circumstances. So, for a refinance to be successful you must consider both the market and your own individual situation. If your credit history has improved or your income has increased, you may be eligible for a lower interest rate. Does your home loan offer a competitive interest rate? Are you happy with your current lender? Have they provided you with a quality service? If not, you may consider refinancing to get better services and additional features.Refinancing Costs
Refinancing can be time consuming and costly, especially if you don’t do your homework before changing lenders. Before you refinance there are several aspects to consider, including break costs, interest rates and the value of your property. As can be expected, refinancing your mortgage can involve a number of fees and charges. It’s important to speak to your Loans and Mortgages mortgage broker about all the possible fees and charges to determine whether refinancing is a cost effective move for you.
Your Refinancing Home Loan Health Check
The reality with refinancing is that many home loan holders rarely consider their home loan, let alone review it. The typical home loan holder will only think about their mortgage when it comes time to sell their home and buy another one. Despite this, financial experts suggest that all home loan holders should review their mortgage at least once every two years. Contact an Loans and Mortgages mortgage broker for a free home loan health check, to determine whether refinancing could help you save thousands over the term of your loan.How an Loans and Mortgages Mortgage Broker Can Help?
Loans and Mortgages mortgage broker will be able to compare 100’s of loans from over 25 lenders to find a loan product that best suits your needs. Plus, your dedicated mortgage broker will guide you through the entire home loan process – they’re with you from start to settlement, and they’ll even take care of the paperwork. All Loans and Mortgages brokers are fully accredited and are members of the Mortgage and Finance Association of Australia (MFAA) and/or the Finance Brokers Association of Australia (FBAA). Best of all your Loans and Mortgages mortgage broker’s service is cost and obligation free!A Loans and Mortgages Mortgage Broker can compare hundreds of home loans from over 25 lenders and give you expert guidance every step of the way.Refinance Mortgage and debt consolidation home loan
How do you know if it’s time to refinance your mortgage or consolidate your loans? Let me ask you another question. When is it a good time to put money back in your pocket? EVERY YEAR you should take a home loan health check to find out if the mortgage you have is still saving you money. A lot can happen in a year, life circumstances can change, you may have taken on extra debts and rates may have moved, so you owe it to yourself and your cash flow to check your home loan and debt situation every year.
Should I Refinance?
My lender is charging me a higher home loan rate than I see advertised elsewhere. Can I change lenders?This is exactly the reason why most people change lenders. There may be a penalty clause in your current home loan, meaning you may need to pay a discharge fee, but it could still be in your financial interests to change. When shopping around it is always important to look for the comparison rate of a product. A comparison rate is essentially the true rate, taking into account the fees and charges you will pay on the loan. So even though you see a lower rate it doesn’t mean the repayments are less. L & M brokers are able to take the hassle out of this for you.If I move my mortgage to a new lender, is there anything stopping that lender from increasing their rates in a few months’ time?
It depends what kind of product you have. If you’re concerned about rising rates, perhaps you should consider a fixed rate home loan, where repayments are fixed for a period from 1 to 5 years.Why do some lenders charge more than others for lending the same amount of money?
Banks and other lenders pay different amounts for the money they on-lend to you, they have different overhead structures and different profit expectations. All these factors affect how much they charge to lend people money.

What documentation do I need to refinance?
The last 3 – 6 months of mortgage statements is sufficient to begin this process. An L&M broker can advise on other documentation.

What reasons have other people like you, refinanced their mortgage for?

  • Invest in a new car to keep the family safe on the road
  • Install a new pool so you can holiday at home
  • Gain some extra funds to secure your children’s education
  • Put in that new bathroom you’ve always been talking about
  • Pay off your home quicker and gain financial freedom
  • Build an extension for the new family addition or just gain some extra space.
  • Increase your cash flow to give you a little breathing space
  • Landscape your yard and create a great place to relax and play
  • Reduce financial stress
  • Use the savings you create each month to put away for a rainy day.
  • Change to a home loan that has different term which work better for you eg. No monthly account keep or redraw fees.  100% offset facility etc.
  • Take a well overdue holiday
  • Increase the term of your mortgage so that you can reduce the monthly repayments and free up cash flow
  •  Getting cash out of the equity in your home loan for whatever reason you feel is needed.
  • Roll all your payments into one so you have one convenient payment and interest rate.
How does refinancing your mortgage work?
Simply trade in your old mortgage for a new one! Applying to refinance and/or consolidate your home loan is very much the same process as applying for your initial mortgage. To help jog your memory, an outline of the process is;

  • Contact your home loan consultant and explain what your needs are.
  • Your consultant will ask you some quick questions about your current financial circumstances such as your current income, current debts etc to get an idea of your position as it stands right now.
  • Once this is determined your mortgage broker will research what home loan options are available to you, which home loan products best suit your current situation and of course which mortgage is going to help save you the most money.
  • Once it is confirmed over the phone or by e-mail that you are eligible to proceed, a face to face appointment will be arranged at a time and place that suits you to discuss your loan options.
  • All fees involved in refinancing and/or consolidating your home loan will be explained to you so that you are making an informed decision about changing your mortgage.
  • Once you have decided on the best new home loan option for you, your mortgage broker will prepare the loan application, package it will all the information required and submit your loan application to your chosen lender.
  • Once your loan has been conditionally approved, a valuation on your property will be completed to determine how much your home is worth and therefore how much equity is available to you.
  • When your valuation is returned the loan is sent to a mortgage insurer for approval.
  • On receiving this approval from the mortgage insurer, you are now considered to be formally approved and the lender can instruct solicitors to draw up your mortgage documents.
  • Once your mortgage documents have been returned, the solicitors will contact your old home loan lender to book a time to pay out that loan.
  • Your loan is then booked for settlement. Once settlement of your home loan occurs, your new lender will payout your previous mortgage and any other debts you have nominated to pay out.

What about the refinancing costs?
There are certainly costs involved in refinancing your mortgage, however when refinancing you are often incurring these costs to gain a greater benefit. Common costs incurred may be;

  • Home Loan application fee
  • Property Valuation fee
  • Mortgage Insurance (depending on how much you are borrowing)
  • Solicitors documents and services fees
  • Government fees and charges
  • Stamp duty
  • Title insurance
  • Discharge fee
  • Penalty payment
Home Loans Specialist – Mortgage Broker Sydney
Refinancing Your Mortgage

  • In the last decade, more people have opted to refinance mortgage to help them manage debt. The Australian Bureau of Statistics have previously reported that, on average, about 20,000 existing mortgages per month are refinanced as people try to manage situations of high consumer debt.
  • When home loan rates are favorable, homeowners who have sufficient equity built up in their homes can combine the debts with their home loan in a new, bigger mortgage.
  • The advantage when you refinance loan is that you can reduce the number of debts to be managed, from several accounts to just one — the new refinance mortgage.
  • In addition, you can have all your consumer debts now attracting high interest rates become part of the new mortgage and be charged at the lower home loan rate.
  • The disadvantage when you refinance mortgage is that your home loan repayments will get bigger along with any recent rise in home loan rates or interest rates in general. In times when more rate rises are likely, the refinance loan option may add to mortgage stress.
  • One other downside is that you will have to pay interest over a longer period of time. A mortgage may last up to 40 years, so more interest will be charged on your original debt in the long run