Refinance Home Loan

What is refinancing a home loan?

Refinancing your home loan means that you either switch to a different loan product with your current lender or take out a new home loan with another lender. When you refinance your loan the current balance is transferred to the new loan agreement.

Can I refinance a fixed rate mortgage?

You can refinance a fixed rate home loan but it’s important to research the costs involved, such as the following exit fees:

Break fee

You may be required to pay a break fee if you change your fixed rate loan before the agreed period ends. For example, moving to a variable interest rate, switching to a different loan product, or refinancing for a lower interest rate. This fee is to cover the cost lost by the lender because of the change.

Check your contract for the specific terms and conditions on your loan. It may be possible to negotiate for a lower fee or to waive it, but this will depend on the lender.

Discharge fee

When you finish paying off your home loan, or close the account by refinancing, you will be charged a discharge fee to cover the administrative tasks involved.

Difference between mortgage renewal and refinance

Mortgage renewal is when you reach the end of your loan term and have not finished paying off the debt. You can renew the existing loan agreement with the same lender and pay off the remaining amount.

Refinancing a home loan involves breaking your current mortgage and replacing it with a new loan. This might be with the same lender or a different lender.

When to refinance a home loan

When is the right time to refinance a home loan will depend on your individual circumstances. Typically, it will be when you have an opportunity to save money in the long-term, or if you need to access more funds.

Can you refinance your mortgage at any time?

You can refinance a home loan at any time but it is generally best to wait until your circumstances have changed. For example, you are able to afford to make bigger repayments or need to access equity in your home, you are able to get a better interest rate with a different lender, or you want to take advantage of The reason for this is that when you apply for a loan, including refinancing, a credit check is usually required and this will temporarily lower your credit score. Additionally, applying for multiple loans in a short period of time can temporarily lower your credit score.

Why refinance your home loan

People refinance for a number of reasons in Australia. Some of the most common reasons to refinance a mortgage include:

• Circumstances have changed
• Get more competitive interest rate
• Access equity in home
• Looking to switch type of interest rate
• Take advantage of new loan features
• Increase or decrease repayment amounts
• Debt consolidation
• Unhappy with current lender

If you’re considering refinance your home loan, talk to our expert mortgage brokers today to explore your options. We take pride in finding you the best financial solution for your individual needs – without any of the stress and hassle.

Pros and cons of refinancing home loan

There are a lot of things to consider when you are thinking about refinancing. Understanding the advantages and disadvantages of refinancing your home loan is important so that you can make an informed decision.

Common pros and cons of refinancing your home loan include:

Does it cost to refinance your mortgage?

There are costs involved with refinancing a home loan. The exact costs will depend on the lender and your financial situation, but common costs include:

• Application fees
• Discharge fees
• Break fees
• Lenders Mortgage Insurance (LMI)
• Ongoing fees
• Land registration fees

Every lender will have their own fees and costs, so it’s important to check with your current lender what fees and costs may be involved.

Our mortgage brokers can help you understand and calculate the fees and charges involved in refinancing your home loan. We can also negotiate on your behalf to get you the best terms and features on your new loan.

Is it worth refinancing a home loan?

Whether or not it’s worth refinancing your home loan will always depend on your individual circumstances. It is good practice to regularly review your home loan and compare it to what is currently available on the market.

It can be useful to consult a mortgage broker when you’re considering refinancing your home loan or if you’re interested in exploring your options. Using experienced mortgage brokers, like our team at Oceania Finance, can help you compare a wide range of lenders to find the perfect lending solution for you.

How to refinance a home loan

The exact refinancing process will depend on what lender you go through and whether or not you use a mortgage broker. But the general steps you will take include:

1. Evaluate your current financial situation
2. Decide what you are looking for by refinancing your home loan
3. Research lenders or contact a mortgage broker
4. Submit an application
5. Sign the contract

Thinking about refinancing your home loan but not sure where to start? Oceania Finance is here to help.
Refinancing your home loan can be an important but stressful decision. That’s why our experienced mortgage brokers at Oceania Finance are with you every step of the way.

We will:

• Breakdown all that confusing lending terminology
• Give you access to a wide range of lenders
• Save you time, money, and stress
• Help you every step of the way

Ready to take the next step? Contact our friendly mortgage brokers today to get started.