The process of switching to a new home loan may sound like a hassle but it can be surprisingly easy, especially with your Aussie Broker by your side.
It’s important to remember that just like when you received your first home loan, when it comes to choosing the right home loan there is no one-size-fits-all solution. It’s a matter of finding the home loan that meets your particular needs now and into the future.
The refinancing process can be summarised in five simple steps:
- Your Aussie Broker will take the time to get a clear picture of your needs and your current situation. This includes some information on your income, assets, liabilities and expenses. Armed with this detail, they’ll provide options and recommendations that match your needs and budget.
- Once you’ve chosen your preferred option, the application process works in much the same way as when you applied for your current loan. In some cases your home may need to be valued but your Aussie Broker will confirm if this is the case. Your broker will prepare all the paperwork, and once signed, submit it to the lender.
- Once you’re approved for your new loan, your broker and new lender can let your current lender know that you’d like to pay out — or discharge— your loan.
- When your current lender knows the exact date of settlement, you’ll be given a final payout figure. Your broker will keep you informed throughout the process, but will manage it all on your behalf.
- From here, your new lender pays out your old loan, you will get new documentation for your new loan and you begin making repayments on that. It’s that straightforward!
Valuing your property when refinancing
When you’re looking to refinance, your new lender may want to value your home, because this will determine the amount of money they’re willing to lend you. Some lenders may charge you a fee for this valuation, which your broker will tell you and factor into the numbers to be sure that refinancing is right for you.
If refinancing is on your ‘to do’ list, or it’s been over 12 months since you got your home loan, an appointment with an Aussie Broker to review your loan won’t cost you a cent. And remember, the best part about refinancing is that you don’t have to do it alone! A broker manages the process for you and could end up saving you thousands.