How to Refinance
The golden rule of refinancing a home loan is to not do so for the purposes of financing a holiday or for buying a new car or boat. The more valid reason for taking such a step is to do so in order to renovate or repair your home, or even to finance another property for the purpose of investment. The obtaining of further finance in such a way should therefore be used to enhance your financial status not to place you further in debt. A situation that you will find may become quite expensive in the long term. If you are paying off a loan you should always be reviewing the loan. While the loan that you have may have been the best loan that was available at the time you may find that things have changed and there are much better options available. If you find that your home loan is not the best home loan that is available to you then you may look at refinancing the loan. If you refinance your home loan you may be able to save a lot of money. However, refinancing can be expensive and you may find that even though you will be saving money the cost of refinancing may be too much. If you are considering refinancing a home loan then you should make sure that you consider all the options and costs that are available.
| Home Loan | Details | Interest Rate (p.a.) | Comp Rate^ (p.a.) | App Fee / Ongoing Fee | Max LVR | Min & Max Borrowing | |
|---|---|---|---|---|---|---|---|
 State Custodians Mortgage Company Line Of Credit Loan |
Refinance your home loan to consolidate high interest debts with this fantastic loan. | 6.22% | 6.45% | $0 / $345 | 90% | $150,000 / $1,000,000 |
 
|
 HomeStar No Fee 100% Offset |
Refinance to a home loan with features which can help you repay your mortgage sooner. | 6.46% | 6.46% | $0 / $0 | 90% | $250,000 / $750,000 |
|
HomeStar Line of Credit Loan |
Refinance to an interest only loan to transfer your home to an investment property. | 6.47% | 6.78% | $0 / $0 | 90% | $250,000 / $1,000,000 |
|
 ANZ Equity Manager |
Refinance to access your equity for investments or home improvements. | 7.45% | $600 / $150 | 92% | $20,000 / $10,000,000 |
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If we take it that your motive for refinancing is the right one and that you have decided to go ahead the question then arises of – How to refinance?
First of all make sure you do the following before you begin any negotiations:
- Clear all debt on your credit cards.
- Pay out all outstanding loans you may have.
- Increase your household income the best you can.
- Ensure your credit standing is A1.
- Make sure your property value has increased (neighbourhood house prices have risen, your garden is neat and tidy, any painting that needs to be done has been completed and that any appraisal will be favourable).
The main objective in wanting to refinance in the first place should be the need to better your own financial situation in one way or another.
This can be for any of the following reasons:
- You want to and can achieve a lowering of the interest you are presently paying.
- You want to fix your interest rate for a period of time to stabilize your repayments.
- You want to take advantage of any equity you have in the home.
How to Refinance – to take advantage of better interest rates.
If you wish to lower the interest rate you are presently paying and want to take advantage of a lower rate that has become available you will need to:
- Talk to your lender about changing your present mortgage to a fixed interest rate home loan.
- Your present lender is the best place to start when starting out on learning how to refinance your present mortgage so as to get a better deal with a refinanced mortgage and Home Loan Finder can help you negotiate the best deal no matter who your lender is.
You can refinance your present home loan to a new fixed interest rate home loan for a period from one to five years.
If you can manage to achieve the transaction at a cost that will not be too prohibitive, with a lender who knows you and your needs, it will save you a lot of preliminary work that you would have to do otherwise, with another lender who is not as aware of your particular financial situation.
The new fixed interest rate loan will help you to budget better each month as you will know exactly from month to month exactly what you will need to pay. This is in contrast to a variable interest rate loan that will have you experience an increase in the interest rate component of your home loan repayment as interest rates rise.
How to refinance – to gain access to your home equity.
If you wish to refinance your mortgage in order to gain access to the funds your home has acquired over time in the building equity you now own on your property you can approach your lender for a home equity loan or cash out home loan to replace your old mortgage.
The new mortgage would pay out your existing mortgage and return you sufficient funds to carry out any plans you have for the money. It is wise to take this approach when contemplating major renovations, repairs on the home or even to assist in the purchase of another property as an investment.
How to Refinance – to get the best deal.
It is always wise to approach your own lender first when seeking out the best home loan to change over to in order to get a better financial instrument that better reflects your particular circumstance. But this first approach should also be balanced with undertaking inquiries with other lenders as well because competition between lenders may assist you in getting a better deal.
- If your lender tells you that there will be a substantial application fee to pay to get you the new home loan look around for another lender who will be willing to accept your business without you having to pay for it.
- When told that there is another lender who will waive the new loan application fee you will most likely find that your old lender will find a way to do likewise.
The golden rule of refinancing a home loan is to not do so for the purposes of financing a holiday or for buying a new car or boat. The more valid reason for taking such a step is to do so in order to renovate or repair your home, or even to finance another property for the purpose of investment.
If you want to find out more about how to refinance your home loan please contact us.
Related posts:
- When Is It Time To Refinance Your Mortgage?
- Refinancing Equity
- Refinance Options
- Cash Out Mortgage Refinance
- Bad Credit Mortgage Refinance
- Cash Out Refinance
- Refinance Fees
- How to Refinance a Mortgage with No Equity
- Refinance Your Home
- Should I Refinance my Mortgage?
Top Home Loans
| Home Loan | Details | Interest Rate (p.a.) | Comp Rate^ (p.a.) | App Fee / Ongoing Fee | Max LVR | Min & Max Borrowing | |
|---|---|---|---|---|---|---|---|
 Loans.com.au - Dream Catcher | A home loan offer with a $0 application fee and one of the lowest available home loan interest rates. | 6.13% | 6.47% | $0 / $375 | 80% | $50,000 / $750,000 |
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