Considering a home loan refinance see a mortgage broker
 The first question to ask your mortgage broker is 'are you getting the best deal on your existing home loan from your current lender'. The most probable answer is no, since many lenders have an unfortunate habit of offering better interest rate discounts to new home loan customers. Therefore to get the best deal you may have to become a new customer with a different lender.
Did you know that on a $350,000 home loan at 6% P&I over 5 years a 0.25% difference can save you over $4,300 and if you continued to make the same repayments you were on your old home loan ie: as additional $57 per month you would save a whopping $39,000 (approx) over 25 years. However there are many factors that can influence your decision and there may be barriers such as early exit fees, LMI (lender's mortgage insurance) or the great trap of cross collateralisation. So the first thing we, as your mortgage broker will do is to assess whether you are really in a position to make a cost effective move to another lender.
Refinancing gives you an opportunity to reassess the features of your home loan that you may or may not need and may be paying for. A home loan refinance also allows you to consider aspects such as cross collateralisation which possibly due to tight settlement deadlines in the original finance may have been forced upon you.
Of course a home loan refinance isn't really possible for everyone. As we have already mentioned if your equity is less than 20% ie: the banks loan to valuation ratio (LVR) is greater than 80% then you would be up for lender's mortgage insurance (LMI) all over again. Likewise if you have a fixed rate loan and you are unlucky enough for rates to have fallen after you fixed then you may be up for some ferocious break costs.
 But if you are simply feeling that you could be doing better with your current home loan, then you probably can be and you should contact us as your mortgage broker to give your home loan mortgage a free check-up. Don't be afraid that we will try and push you into a refinance for a quick commission because that's not how we work. Sure we want your business but we also want your repeat business and your recommendation to your friends and family. If it's not in your interest to refinance your home loan, we will tell you straight up. Many of our current clients came back to us because they received honest advice in the first place.
A full refinance is quite straight forward but don't expect it to be done overnight. It can be quite prompt where lenders have a 'fast-refinance' option and your requirements are basic. However, if that isn't the case then you can expect your old lender to drag their feet on the loan discharge, taking maybe two weeks or more just to arrange this. There may also be restrictions on the refinance if the new loan amount is greater than the loan amount being refinanced - referred to as 'cash-out' so you may need have an explanation ready if this is the case.
Click here to go to our express inquiry form or call 1300 137 586. We're confident you'll appreciate our service as your mortgage broker.
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