Refinancing your mortgage can have big benefits
Refinancing (or re-fixing) an existing home loan entails paying off your current mortgage to secure another mortgage - one that better suits your needs.
Refinancing a mortgage can be a very smart financial move with big benefits - including potentially saving thousands of dollars in interest and helping you get mortgage-free faster. The timing, however, is crucial…
Being highly-experienced mortgage brokers, we can ensure the very best refinancing terms for both your short-term and long-term financial goals.
Whether you're interested in restructuring your mortgage or renegotiating your interest rate, we're the team for impartial and honest advice.
When is it a good idea to refinance your mortgage?
By looking at your long-term goals and your current lifestyle, we will let you know if refinancing your mortgage is viable for you. You can refinance through your current bank or lender or move your mortgage to a new provider. There are numerous reasons why homeowners choose to refinance, including:
To pay off your mortgage quicker
To lengthen your mortgage term (and benefit from lower repayments)
To secure a more favourable interest rate
To avoid current bank fees
To move your mortgage from a floating interest rate to a fixed interest rate (or vice versa)
In order to release some home equity to deal with a financial emergency, renovate, finance a large purchase, invest, or consolidate debt.
To transfer away from a non-bank lender to a central bank lender if you borrowed with a lower deposit
If your current bank won’t extend the finance you need, perhaps another mortgage lender will
To get a cash contribution from a new lender
To restructure your mortgage / home loan to better meet your needs
With the property market currently in such a state of fluidity, having options available is an excellent way to ensure you're getting the best deal possible. Our experienced mortgage brokers have access to over 16 bank and non-bank mortgage lenders, to secure you the best refinancing terms.
The world of mortgage finance can be a ruthless and daunting place - but with the help of our experienced mortgage brokers you can make short work of it all.
What are the costs involved in refinancing a mortgage?
As with any financial decision, It's important to consider both the benefits and potential drawbacks of restructuring your current mortgage or switching banks. When refinancing a mortgage, you might need to pay:
An Early Repayment Break Fee
If you repay your mortgage before it’s is due for maturity, your current bank may charge a break fee. If so, you should weigh the cost of paying the one-off break fee, compared to the long-term cost savings of your refinancing package. (We can do all these mortgage calculations for you, contact us!)
Repayment of Cash Contribution
If you are changing banks within a specific period of time, you may have to repay a cash contribution your bank previously gave you.
A Discharge Fee
Another fee that banks may charge when switching to a new mortgage provider is a discharge or admin fee - to complete the paperwork of closing your current mortgage and transferring it over to a new lender.
Legal Fees
Switching your mortgage to a new lender will involve signing additional legal documents in front of a solicitor. The solicitor will charge you for their services.
A Valuation Cost
While most banks will complete an electronic valuation of your property, in some cases banks may require a physical valuation. This would need to be undertaken by a registered valuer at a cost to you.
While it's necessary to consider the above possible costs, many banks offer cash and legal fee contributions when refinancing with them, which is often enough to cover any break or legal fees incurred!