You’re possibly (actually, probably) paying too much interest on your loan. Get in touch and we’ll show you how to make your mortgage work for you, so you can spend your hard earned on what really matters to you.
It’s always a good time to look for a better deal on your home loan, but banks can sometimes make it more challenging than it needs to be. We make it Seriously Simple.
Yes, you can. You either need to refinance with a lender other than the one you have a home loan with, or you take out a different home loan with the same lender. Basically, you will be adding extra money to your initial home loan, which can make it expensive overall, but it could be cheaper than a personal loan.
1. Recent payslips, in order to document your income
2. Your most recent Tax Assessment Notice
3. A letter from your employer to confirm your salary
4. Several forms of ID, such as your driver’s license or passport
5. Financial and credit documents, like credit card statements, bank account statements etc.
Yes, it can affect your credit score. Refinancing is considered to be a credit application. If you have a bad credit score, it could affect your chances of being approved for refinancing. If you also get rejected, it can have a negative impact on your credit score. Also be wary of applying for multiple refinances in a row as that could also affect your credit score.
There are a few moments when you might consider refinancing:
1. Your current lender’s rate is no longer competitive and there are lower interest deals elsewhere
2. The value of your property has increased and you want to access your equity
3. A major change has transpired in your personal or financial situation
4. You need money to pay for something like a child’s education, a home renovation, or a property investment
5. You want to switch to a fixed rate at the right time
6. You want to consolidate your credit card debts
You don’t want to refinance if:
1. You probably aren’t going to own the property for much longer
2. Your property value has decreased
3. Your current loan is fixed (prepayment penalties can be high on existing home loans)
4. Your credit history has taken a hit due to outstanding debts – you probably won’t get a good rate
5. You don’t have a reliable source of income anymore
This depends on the terms and conditions of your current loan. For example, there could be penalty fees if you pay your mortgage off early. Penalties like that could be offset by the savings you make from switching.
It is important to keep informed and continually check interest rates to minimize how much you spend over the course of your loan. It could make a significant difference in your financial position and lifestyle! Find everything you need in our guide.
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