Refinancing a home loan: the process explained.
When you’re busy with life, refinancing can seem like a hassle. However, with a FinancePath Credit Adviser to guide you through the process, it doesn’t have to be!
Refinancing may allow you to switch to a more competitive home loan, thereby potentially saving you money in interest.
It can also help you fulfil other goals, like using different finance options to renovate your property or consolidating your debt and paying it off more efficiently. You may even consider refinancing to access equity to buy an investment property or another big-ticket item like a pool.
To get you started, let’s explain the refinance process.
Step 1: Work out your financial goals
Do you want to find a loan with a lower interest rate? Perhaps you’d like to explore some of the interest-saving loan features that are available nowadays, like offset accounts and redraw facilities?
It’s important to understand what your financial goals are so that we can help you to access the finance you need to achieve them.
Step 2: Compare home loan options
Next, it’s time to do some research.
Trying to understand the home loan options available to you can be time-consuming and overwhelming. Instead, get us to do the hard yards for you. We can explain which home loans may be suitable and can discuss your options.
Step 3: Submit your loan application
Once you’ve decided which home loan is right for you, we’ll take care of your mortgage application.
Just like when you applied for your original loan, you’ll need to supply certain documents. These usually include identification, proof of income, home loan statements, and records of living expenses and liabilities and assets.
The new lender may also require a property valuation. This helps them to determine how much they are willing to lend you.
Step 4: Discharge your existing loan and settle your new one
When your new loan has been approved, we will let your current lender know you plan to discharge, or pay out, your existing loan.
We’ll keep you informed throughout the settlement process and let you know when your we, your new lender, have paid out your old loan.
Step 5: Start making repayments
After settlement, you’ll receive documentation explaining the ins and outs of your new loan. Then, it’s time to start making repayments.
Ready to get started?
As you can see, refinancing may not be as hard you think. If you’re interested in comparing what loan options are available for you, reach out to the FinancePath team today on 1300 780 440.