What Does It Mean To Refinance Home Loan?
Home loan refinancing is when you take out a new loan to replace your current mortgage. The new loan pays off the balance of your old mortgage and you start making payments on the new loan. Mortgage refinancing can be a great way to save money by getting a lower interest rate, switching from an adjustable-rate mortgage to a fixed-rate mortgage, or extending the term of your loan. It can also be used to consolidate debt or free up cash for home improvements.
At NBHL, we offer a variety of mortgage refinance options and our experienced team can help you find the right one for your unique situation. Give us a call today to learn more about how we can help you save money with mortgage refinancing.
Refinancing Home Loans Brisbane: The Benefits of Using a Mortgage Broker to Refinance Home Loan
Mortgage refinancing is a big decision and one that shouldn’t be taken lightly. There are a lot of factors to consider, and it’s important to get the best deal possible. Mortgage refinance brokers can help you compare rates and terms from different lenders, and negotiate on your behalf. If you’re considering mortgage refinancing, it’s definitely worth speaking to a mortgage broker to see how they can provide you with benefits like:
Expertise in the industry of mortgage broker refinance
Mortgage refinance brokers have a broad industry knowledge base and can offer insights into the different options available to you. They can also help you compare mortgage rates and terms from different lenders, and negotiate on your behalf to get the best deal possible. Ultimately, working with a refinance broker can save you time and money by helping you get the best mortgage refinance deal possible.
Access to other mortgage lenders options
Mortgage refinancing brokers can help to increase your pool of mortgage lenders when you’re refinancing home loans. They have access to a variety of mortgage lenders, and they work with each borrower to find the best mortgage refinancing solution. In addition, mortgage brokers are familiar with the different interest rates and terms offered by different lenders to help you find the best possible solution.
Less time to deal with paperwork
Mortgage brokers typically handle all of the paperwork associated with refinancing, which means that you can save a lot of time and hassle. So if you’re considering refinancing your mortgage, be sure to talk to a refinance mortgage broker first. They could make the process easier and smoother for you.
Higher chances of getting approved
Applying for a mortgage can be a time-consuming and frustrating process, especially if you’re not sure where to start. A mortgage broker can help by taking the guesswork out of the equation. They can also help you navigate the often-complex world of mortgage refinancing, and may even be able to find programs that can save you money. In other words, working with a mortgage broker gives you greater chances of being approved for a mortgage – and getting the best terms possible.
Working with a team who puts your best interests first
Unlike banks and other financial institutions, mortgage refinancing brokers are not beholden to shareholders. This means that they have your financial best interests at heart and are more likely to get you a better deal than if you went to a bank directly. So, if you’re considering a mortgage refinance, be sure to work with a mortgage broker to get the best possible deal.
Meeting with a mortgage broker who is an accredited member of the Mortgage and Finance Association of Australia (MFAA) is essential to ensuring that you receive the highest level of service. In addition, it’s important to remember that all mortgage brokers are required by law to ensure that they are acting in your best interests through their ‘Best Interests Duty’ policy. This ensures that not only will you be happy with your loan at a later date but also that you can return to them should any problems arise.
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Best Tips For Refinancing Home Loans Brisbane
If you’re looking to refinance your home loan in Brisbane, there are a few things you need to know. Here are some of the best tips to help you get the most out of your refinancing process:
Determine what your credit score is
The first step to refinancing your home loan is to find out what your credit score is. This will help you determine what kind of interest rate you’ll be able to qualify for. You can get your credit score from a number of sources, including online credit report providers. You can visit the Australian Government Money Smart website for more information on getting a credit report.
Weigh the pros and cons of debt consolidation
If you have multiple debts, you may consider consolidating them into your home loan. This can be a good way to save money on interest payments, but it’s important to weigh the pros and cons carefully before making a decision. We can run the positives and negatives of debt consolidation with you to assess if it’ll reap the benefits in the long run.
Determine if you need fixed or variable interest rates
When you’re refinancing your home loan, you’ll need to choose between a fixed and variable interest rate. Fixed rates charge a defined rate of interest that doesn’t change throughout the lifetime of the loan. On the other hand, variable interest rates change as time goes by – it can move up or down over the loan term. The fluctuations in interest rates can happen anytime, but they often occur in accordance with the changes to the official cash rate, set by the Reserve Bank of Australia.
Know the which loan features are the most beneficial
There are a number of different loan features that you can choose from when refinancing your home loan. Some of the most popular options include redraw facilities, offset accounts, and fixed interest rates. Think about which features will be most beneficial to you before making a decision. If you’re stuck with what to choose, we can walk you through the whole mortgage features and assist you in choosing the right one.
Also compare mortgage products
When you’re comparing the best refinance home loans, it’s important to compare the complete products on offer, not just the interest rates. Some lenders may offer low interest rates but charge high fees, so it’s important to compare the total cost of the loan before making a decision.
Get ready for your property appraisal
One of the most important steps in the refinancing process is getting your property appraised. This will help your lender determine how much your home is worth and whether or not you have enough equity to qualify for a refinance. Be prepared for your appraisal by gathering things like recent tax assessments, mortgage statements, and repair estimates.
Keep an open mind about loan options
There are a number of different loan options available, so it’s vital to keep an open mind when you’re refinancing your home loan. Talk to your lender about all of the different options and compare them carefully before making a decision.
Work with an experienced mortgage broker
If you’re not sure where to start, or if you’re feeling overwhelmed by the process, working with an experienced refinance mortgage broker can be a great way to get started. Mortgage brokers can help you compare home loan options and find the best deal for your situation.
Why Choose North Brisbane Home Loans?
5 Star Rating
Being a top rated finance broker in Brisbane, we put you first and genuinely want to help you achieve your property ownership dreams with the best refinance home loans.
We have hundreds of happy customers, find out what they’ve said about working with North Brisbane Home Loans here.
Experienced Mortgage Brokers
With more than 90 years of combined experience in the finance industry our expert refinance broker can confidently offer you the best advice when it comes to finding the best refinance home loans in Brisbane for you.
We Work For You – Not The Banks
We don’t charge any fees for our home loan refinance services, our commission comes from the lender.
So our top-rated refinance brokers are by your side every step of the way to ensure you select the best refinance home loan product for your individual circumstances.
Exclusive Partner Network
Not only do we provide you with the best advice on your home loan refinancing needs, we also introduce clients to our network of trusted partners offering discounted rates.
Save time and money searching for reliable building and pest, real estate agents, solicitors and more.
5.0 Star Reviews from Refinancing Customers
5.0 STAR REVIEWS
“The refinance of our existing home loan turned out to be a bit more complicated than we first expected with new banking regulations etc, but Pat, Di and the team couldn’t have been more helpful. The NBHL team went the extra mile for us and got us the result we wanted. The knowledge and experience of this team is clear and we always felt we were in good hands. Highly recommended.”
“The friendly and approachable service Pat and Di provided us with, made our refinancing experience stress free and very easy to get through. Taking us through the process step by step and being available to answer any questions we had, made it a seamless task. I would happily recommend North Brisbane Home Loans to anyone seeking a home loan.”
“We have quite a complex setup with multiple loan facilities, trusts and personal accounts and have quite complex requirements when it comes to credit facilities that have stumped many brokers in the past. Patrick had no problems working through it and making sure we received products that fully met our requirements and with an exceptional rate to boot. Patrick and Debbie also made the process simple and they were both an absolute pleasure to deal with. I have no hesitation in emphatically recommending them to anyone looking to refinance or restructure their finances.”
“Great service from our initial consultation with Pat until our approval for refinancing came through. We were kept up to date throughout the process and they regularly followed up with the bank during the Co-vid related delays. All the staff we dealt with were professional and answered any questions we had promptly. We would highly recommend North Brisbane Home Loans”
“I recently approached Pat and the team at NBHL for a refinance on my existing home to prepare me for a new upcoming purchase. Refinancing can be a really daunting and complicated process, the team at NBHL were so helpful and professional, they really know their stuff and made it as easy as it could possibly be… more importantly they saved me thousands of dollars in the process…I can’t recommend NBHL enough. Thanks for everything!”
North Brisbane Home Loans: Your Best Choice for Refinance Loans
North Brisbane Home Loans is one of Australia’s leading mortgage refinance brokers, backed by more than 20 years of experience helping people refinance their home loans and multiple accolades. We know the process inside and out, and we’re here to help you every step of the way.
We offer a free, no-obligation consultation so that we can learn about your unique situation and goals. We’ll then work with you to find the best home loan for your needs. We’ll compare products from a range of different lenders, so that you can be sure you’re getting the best deal possible.
If you’re ready to start saving money on your home loan, contact us today to schedule a free consultation. We look forward to helping you achieve your financial goals.
Refinancing Home Loan Frequently Asked Questions
Why should you consider refinancing your home loan?
Refinancing your home loans allows you to change the terms of your mortgage to get lower interest rates and monthly payments. In addition, you can obtain funding for home improvements, repairs, or even renovations.
What are the different types of home loan refinance?
These are the 2 most common types of refinancing out there:
- External refinance – this refers to refinancing by transferring your loan to another lender.
- Internal refinance – this is when you refinance your home loan with the lender that you’re already working with.
The type of refinancing that you choose is crucial as it helps you decide if it is even necessary for you to refinance in the first place. Opting for internal refinancing, for example, might save you from some of the fees associated with changing to another lender. It is best to speak with an experienced mortgage broker to decide which option is best for your personal situation.
What are the reasons to refinance your home loan?
There are several reasons why you might want to refinance your home loan. Here are some of them:
- You want a lower interest rate to save more money
- You need a loan that suits your needs
- You have other loans that you’re paying off
- You want to renovate, improve, or repair your home
- You want to invest in properties, shares, or other opportunities
How do I work out my borrowing capacity when refinancing?
To calculate or work out your borrowing capacity when refinancing, you might want to ask a professional mortgage refinancing broker to help you. Refinance mortgage brokers can provide you with unbiased opinions regarding your options. Of course, you can talk to banks or a non-bank lender, but they’ll try to convince you towards their own refinancing home loan options.
How do I know if I will qualify for refinancing my home loan?
Aside from documents like proof of income and list of existing loans and expenses, there are several eligibility criteria for you to know if you qualify for refinancing your home loan. Here are some of them
- Proof of Australian citizenship/permanent residency
- Have more than 20% of equity in your home
- Excellent credit score
- Must be employed and have proof of income
What information will I need to apply for a refinance?
A professional mortgage broker must have a checklist of all the documents required to help you refinance your home loan. These documents include, but are not limited to:
- Personal information and an ID
- Proof of income (tax returns if self employed, payslips if employed, and business activity statements for business owners)
- Current home loan record
- Statement of living expenses
- Statement of assets and liabilities
Should I refinance with a fixed or variable interest rate?
The interest rates of refinancing home loans is a crucial factor for many people looking for better options. A professional mortgage broker can help you sort through the options available, depending on your unique situation. They can also help you understand what the interest rates on your loan will mean for your repayments.
Mortgage brokers can also help you understand the difference between getting a fixed rate vs. a variable interest rate. You can opt for a fixed rate if you want security and stability in your repayments during a set period of time, say within 1-5 years. On the other hand, variable home loan rates will work if you want to take advantage of cash rate movements.
Is it a good time for me to refinance?
If you’re unsure whether it’s the right time to refinance, you can ask the help of a professional mortgage broker. They’d know what to do before making a big decision. If you have a mortgage with a high interest rate, refinancing can save you thousands of dollars over the life of the loan. But if your credit score is low or you have other debt problems, refinancing might not be the best option.