The process of refinancing can be quite straightforward – especially if you enlist the help of an expert Aussie Mortgage Broker. There are five key steps to refinance your home loan:
Your expert Aussie Mortgage Broker will listen to your needs to help you find a loan that’s right for your circumstances, and even provide assistance completing your loan application
Once your new loan is approved, you or your solicitor can inform your current lender that you would like to ‘discharge’ – or pay out, your current loan
When your current lender knows the exact date of settlement, you’ll be given a final payout figure
Your new lender pays off the outstanding loan, and the title deeds to your property will be transferred to your new lender
Upon settlement, your new lender will lodge a document called a Discharge of Mortgage with the Land Titles Office in your State or Territory. After this, you begin making repayments on the new loan, with the freedom to enjoy all the flexibility and features it offers
Remember, an expert Aussie Mortgage Broker is available to help at every stage of the refinancing process, and we’ll stay in touch to ensure your new loan lives up to your expectations.
Getting the paperwork together
If you decide refinancing is right for you, having your paperwork ready before you begin speaking with lenders can speed up loan approval. A lender may want to see:
- Proof of your income
- Statements for the last six months of any existing home loans or personal loans
- Most recent rates notice and building insurance policy on the property offered as security
- Your most recent strata notice (if applicable)
Protecting your property
Along with securing a new home loan, refinancing is an ideal opportunity to review your insurance needs. The good news is that it is easy to manage risk by making sure you have the right insurance in place. Let’s look at two main types of cover worth reviewing when you refinance your home loan.
Mortgage Protection Plan
Refinancing can sometimes mean taking on a larger mortgage. You owe it to yourself and your family to decide the best way to protect your mortgage and lifestyle should the unexpected happen.
Mortgage Production Plan is an insurance product that provides peace of mind if the unthinkable should happen. Importantly, it includes cover for you and your home loan, taking care of some or all your mortgage payments if you become too ill to work, or if you pass away.
Aussie offers the Aussie Mortgage Protection Plan that provides cover for:
- Critical illness including 11 serious specified medical conditions
- Loss of life and terminal illness
- Involuntary unemployment in the first 12 months of cover
To find out more about how to protect your lifestyle with the Aussie Mortgage Protection Plan visit aussie.com.au/mortgageprotection and talk to an expert Aussie Mortgage Broker.
Home and Contents Insurance
Your lender will usually require you to take out building insurance as a condition of your home loan. So the refinancing process provides an ideal time to review your existing home and contents cover to check if you have the right level of cover for your needs, and also to see if you could get better value with a different insurer.
Aussie offers competitively priced home and contents insurance featuring:
- Protection against fire, theft, storm, flood and more
- Cover for your contents while moving address
- Flexible level of cover and excesses to suit your needs
- A saving of 25%# off when you purchase a combined home and contents policy online
You can even choose to pay premiums fortnightly, monthly or annually.
To find out more or apply online visit home and contents insurance webpage or talk to an expert Aussie Mortgage Broker.
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