In this blog we share 11 expert tips for refinancing Brisbane North.
North Brisbane Home Loans founder and mortgage broker Pat Cranshaw reveals exactly what you need to know about refinancing – and how to identify a good mortgage broker.
What are the 3 most important things to consider when refinancing?
When it comes to refinancing, I believe you need to answer the following three things before you proceed:
- Does it make sense?
- Will it improve the loan set-up in terms of the structure or rate and repayments?
- Will I be in a better situation afterwards than before?
A good mortgage broker will take the time to assess your current personal situation – and your short- and long-term goals – to put in place an appropriate plan for refinancing and help you get a better deal on your home loan
When is the best time to refinance?
This is a common question I get asked.
Most people I speak to find it beneficial to refinance if you haven’t had your reviewed for more than two (2) years. Banks and rates are changing their appetite and policies constantly – which means you could get a much better deal.
Here’s a couple of other examples of when refinancing might be right for you:
- If your financial situation had changed. Such as more credit card debt or personal loans that are causing cash flow issues.
- Before your payments start to become problematic. For example: Home loans and all other credit facilities need to be maintained in a satisfactory manner for a new bank to take you on as a client. They do not like late or missed repayments. Or bank accounts that are overdrawn or credit cards that are over limits.
- When your fixed rate loan is about to expire and it is about to go to the variable rate with the same lender. Our experience is that, unless you are ringing the lender or having someone do it for you – the variable rate you will be going to will be higher than you need to be paying. Because it is normally a standard generic letter/offer that comes from the bank. But you can do better, and refinancing is one way to improve things for sure.
What, if anything, can home owners do to get a better deal when refinancing?
As a mortgage broker – and to help you get a better deal when refinancing – I would suggest adhering to the following:
- Keep current credit facilities in order.
- No late payments or over limits on credit cards.
- Continue to ensure home loan repayments are met on time.
- If there have been any extraordinary expenses coming out of transaction accounts – tell your broker, as when they assess statements for living expenses they will need to mitigate these.
- Be open to lenders you may not have heard of – as brokers can get access to many quality home loans with smaller lenders who provide better deals and service.
What makes a good refinancing broker?
There are a number of factors that can lead to a good refinancing broker
- A good communicator who has great relationships with lenders and who can quickly work out a strategy that will improve your current situation.
- Someone with access to a wide variety of lenders on their panel.
- Can order upfront valuations to work out loan value ratios and any impact this may have on lenders mortgage insurance which can make a material difference to whether it is worthwhile.
- Someone who is not afraid to tell you that you are better staying where you are (if that is the case.)
- And finally, a broker who uses technology to help clients get to the end result faster. By this I mean secure portals to upload documents to and an ability to work with you via email and online to make the process easier for you.
Refinancing Brisbane North
If you live in North Brisbane and are considering refinancing, speak to our friendly team at North Brisbane Home Loans, we’ll help you navigate the complexities and get the best deal on your loan!
North Brisbane Home Loans is Brisbane’s leading mortgage brokers with more than 90 years’ combined experience.