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Refinancing your home loan

Thinking of refinancing?

Whether you’re looking for a new home loan, better interest repayments on a personal loan, or anything in between, we’re happy to help. Our brokers have the experience to help customers find the best possible approach to a wide variety of different financial products and loan amounts.

We make refinancing simple

Whether you’re a first-time home loan primary applicant or have questions about refinancing family or company trusts, our mortgage brokers can save you a great deal of time and energy.

We get that not everyone speaks finance, which is why we’re not going to overload you with jargon. Our goal is to help guide you towards the best possible solution for you by breaking the process down in a way that’s simple and easy to understand.

Know exactly what you’re signing up for

The goal of refinancing is to make things easier on your transaction account. That’s why we’ll help you understand exactly what you’re getting into when you switch to a new home loan. We’ll help you calculate not only repayments but also stamp duty, borrowing power, and everything else you need to know to make sure you’re getting the best deal.

We’re happy to help you evaluate all your options

Our friendly and knowledgeable team is here to offer you expert advice on how to achieve a wide variety of financial goals. From the best home loans for refinancing to putting your money to work through investment property, we’re happy to help you map out the best plan for your financial future.

What is refinancing?

Refinancing involves taking out a new loan in order to replace an existing one. While you may even be able to refinance an existing loan with the same lender, refinancing also comes with the opportunity to switch to another financial institution with better rates.

You can refinance a car loan, home loan, personal loans, or pretty much any other debt that you may be currently paying off. Refinancing can be worth looking into if your financial situation has changed since you took on the original debt or if it’s since become too expensive or risky.

Does refinancing lower your loan amount?

The idea behind refinancing is to save money, even if your loan amount doesn’t change. What makes this possible isn’t necessarily changing the amount of money you owe, but paying off your existing loan balance with one that offers better comparison rates, such as lower interest.

Say, for instance, that you have an existing home loan that came with a 3-year adjustable-rate mortgage. While things were fine during the initial fixed-rate period, three years have since come and gone and things are now starting to get a bit tighter. Perhaps your interest rates are starting to rise, increasing the overall cost of your principal and interest repayments.

At this point, it may be time to talk to a home lending specialist to see if you can switch to a loan with a fixed and lower interest rate in order to lower your monthly repayments. By refinancing with either your current financial institution or other lenders, you can renegotiate your loan features to make your monthly repayments more manageable.

What are the reasons for refinancing your home loan?

The goal of refinancing is to find a better or more suitable loan than the one offered by your current lender. There are a number of reasons why people choose to refinance, including the following:

Switching to a better comparison rate

Loans with flexible interest rates can be risky because there’s always the chance that your interest will rise. When this happens it can take you much longer to pay off your debt. By switching to a loan with a fixed interest rate, you’ll have the security of knowing exactly how much interest you’ll be charged throughout the life of the loan.

Even if you are currently paying off a fixed interest loan, you may discover that you now qualify for a lower interest rate than that one you’re currently paying. Perhaps market conditions have changed or your credit score has gone up. No matter the situation, lower interest rates can result in significant savings throughout the course of the loan.

Enjoying more or better features

Some customers choose to refinance in order to enjoy features such as flexible repayments, better repayment holiday terms, or the advantages of having an offset account or transaction account linked to your loan.

Refinancing also presents the opportunity to change the term of your home loan. You may want to increase the term of your loan if you’d like more time to pay it off or switch to a shorter-term loan if you want to reach your loan settlement date quicker without incurring early repayment fees.

Debt Consolidation

Refinancing can also offer a way to consolidate all your debts into one payment. Using the loan to pay off personal loans, car loans, or credit card debt may result in a lower interest rate than you’re currently paying and make managing your bills easier.

Converting a Construction Loan to a Home Loan

Home loan refinancing is also an option if you’re an owner-occupier who has recently finished building your own home. At this point, you may want to use a new home loan approval to pay off the credit you used to build your property.

It’s not uncommon for a new owner-occupier to use a new home loan to pay off their remaining construction loan repayments once their project is finished. You may even be able to do this with your existing lender.

Lenders will often take your property value into consideration when determining owner-occupier interest. If your valuation ratio turns out to be better than expected, this can result in cost savings when it comes to a generous home loan comparison rate. For this reason, you may want to avoid switching to a home loan that excludes owner-occupier interest.

Accessing Home Equity

Refinancing your home loan is also an opportunity to access your home equity, which is the difference between what you still owe on your mortgage and what your home is currently worth. If you’ve been paying down your home loan over a number of years, you may have a healthy amount of equity built up.

Some lenders now offer cash-out mortgage refinance loans that allow you to take out a larger home loan and get a cashback payment from your equity. You can then use the cashback payment to purchase an investment property, pay off debts, or achieve other personal goals.

But beware that not all such offers are created equally. Some of these payments can only be placed in an offset account created by the primary applicant, while others only apply given a specific set of lending criteria.

Don’t get fooled by switching to a home loan that will only prove more expensive due to the lure of only one cashback payment. Our brokers are happy to help you comb through the fine print to make sure that the offer really will result in better terms and not extra repayments.

While refinancing your home loan may be to your benefit, this won’t always be the case for everyone. Depending on your eligibility criteria, your bank’s lending criteria, and other circumstances, there may be fees associated with refinancing that you should be on the lookout for. The good news is that some of them may be negotiable under certain circumstances.

While these fees won’t apply to everyone, we’re happy to work with you to evaluate your situation and make sure they don’t make a home loan refinance a more expensive endeavor than you expect. While most of the following apply to residential lending, there may be similar fees attached to a personal loan.

Exit Fees and Break Costs

While exit fees were officially banned after July 1, 2011, they can be a nasty surprise if you took out a home loan before that. These fees were designed to apply to customers who managed to pay off their home loans early, usually within the first five years of their term.

They tend to take the shape of either a set charge or a certain percentage of your remaining home loan balance, depending on the lender’s credit criteria.

Break Fees

Break costs are fees that some lenders may impose if you attempt to get out of or switch up the terms of a fixed-rate loan before its expiration term.

These fees might come into play if you want to switch from a fixed-rate home loan to a variable rate loan, make extra repayments to pay your home loan off early, or change your interest rate within the fixed-rate period.

Borrowing Costs

Some (but not all) lenders may attempt to hit you with borrowing costs when you refinance. These can include things such as a loan application fee if you’re applying for a home loan or a valuation fee if the lender wants to hire someone to check out your property value.

Sometimes a home loan refinance can also involve a settlement fee, which the bank charges to cover the costs involved to pay off your current home loan.

Lender’s Mortgage Insurance

Some lenders may also ask you to purchase Lender’s Mortgage Insurance or LMI depending on the minimum loan amount you can deposit upfront. This is common practice in residential lending that originated in order to protect lenders in the event that borrowers should be unable to cover any home loans involved.

Generally speaking, only loans in which the borrower is able to deposit less than 20% of their total property value are subject to LMI, but this too can vary based on any given lender’s policies.

Stamp Duty and Fees

Depending on where you live, you may also be charged a tax known as stamp duty when taking out a home loan. This is important to keep in mind if refinancing could increase the balance of your home loan account, as these fees are calculated based on the amount you borrow.

You may also be required to pay a Mortgage Registration Fee to register your property as a security on a home loan. Be sure to speak to your broker, who can help calculate these fees if it turns out that you’d be subject to them.

Refinancing your home loan can be a huge financial decision and may initially seem overwhelming. That’s where we’d be happy to help! Our brokers can guide you through every step of your journey and walk you through the best financial choices for you. Here’s an overview of what the steps in the process look like:

Highlight what isn’t working with your current lender

If you’re thinking of refinancing, then the odds are that things aren’t working out with your current lending situation. We’ll help you figure out what’s working and what isn’t with your current situation in order to help determine what we’re looking for and find the ideal comparison rate.

Compare offers selected just for you

Refinancing a home loan is a big enough task without having to worry about spending hours searching for the perfect lender to switch to. That’s why we make it simple by doing the leg work for you. Once we’re familiar with your situation and what kinds of lending criteria apply, we’ll narrow down the list to find the best replacements for your existing home loan.

Understand the cost of switching to a new home loan

There’s nothing worse than finding a great comparison rate only to discover that hidden fees would actually cost you more in the long run. After all, home loans should be about improving the health of your transaction account, not adding even more strain. That’s why we’ll help you comb over your eligibility criteria to make sure you’re not accidentally getting into a more expensive situation than the one you’re in with your current home loan.

Want To Build Instead of Buy?


Whether you’re building your dream home or doing renovations, getting the right construction loan can make a big difference.

You have enough on your hands undertaking a large construction project, so let It’s Simple Finance help you find a loan with a no-cost service saving you time and money.

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