Refinance Home Loans

What are the Benefits of Using a Mortgage Broker for Refinance Home Loans?

If you already have an existing mortgage, you may be tempted to try and handle a refinance home loan yourself. And while it is certainly possible to get a refinance home loan on your own, choosing to go your own way is a bit like deciding to walk from Brisbane to Sydney (even though you’re being offered a free flight) – it’s possible, but it will take a lot of time, a lot of effort and there’s no real certainty that you’ll reach your destination. In contrast, choosing to work with a broker won’t cost you anything but you’ll experience a wide range of benefits including:

1. A broad industry knowledge base

When you choose to partner with an experienced mortgage broker, you gain access to a treasure trove of relevant industry information. This may include refinance home loan products that aren’t available to the retail market, a detailed understanding of specific lender approval criteria and which products include features that will be most beneficial to your current situation. This means that you’ll have access to better deals and you’re more likely to have your refinance application approved.

2. A bigger pool of mortgage lenders

Mortgage brokers work with a wide range of lenders, meaning they have access to an extensive range of refinance loan products. Not only does this increase your chances of scoring a lower interest rate, but it also suggests you’re much more likely to find a refinance home loan product that will suit your particular needs. Whether you’re looking to make additional payments, access redraw, take advantage of an offset account or even if you’re just hoping to lower your repayments, your chances of achieving these goals are much higher when you work with a mortgage broker.

3. Minimal time spent on paperwork

Refinancing your home loan involves a lot of paperwork – that’s the reality. But the good news is, when you team up with a mortgage broker, they will take over the bulk of that paperwork for you, ensuring that everything is filled out correctly and on time. This makes the entire refinancing process much smoother and less stressful, allowing you to get on with the things that really matter.

4. Greater chances of being approved

If you choose to apply for a refinance home loan on your own, then it is your responsibility to compile the necessary documents, evaluate lending criteria and submit a completed application. One small mistake and you’re likely to have your application rejected (which can, in turn, make it more difficult to secure approval on your next application). Handing this responsibility over to a skilled broker is one of the easiest ways to improve your chances of having your application approved. Not only do we understand exactly what paperwork is required, but we’re also experienced in identifying and resolving any potential application issues before it gets submitted to a lender.

5. Work with a team who have your financial best interests at heart

Lenders make money by signing up new customers – regardless of whether the product they’re offering is going to be the best choice for the borrower. In contrast, a reputable mortgage broker is committed to delivering first-class customer service, always working in the interests of the borrower (not the bank!). Partnering with a broker who is an accredited member of the Mortgage and Finance Association of Australia (MFAA) provides reassurance that you’re dealing with a broker who has integrity and experience. Additionally, from 1st January 2021 amendments to the Credit Act require all mortgage brokers to operate under a ‘Best Interests Duty’ policy. This means that mortgage brokers are required by law to put your interests first, giving added peace of mind to those who are looking to refinance.

Best Tips for Refinancing Home Loans in Brisbane

Refinancing a mortgage is the best way to make your finances better as per your current financial situation. Here are the top 8 best tips for refinancing a mortgage that will help you in finding the best refinance home loans in Brisbane, Australia.

1. Find out what your credit score is

Before you move forward with refinancing your home loan it can be a good idea to find out what your current credit score is. You can apply for a free credit report once every 12 months. What are the benefits of obtaining a credit report? Occasionally, your credit report may contain out of date or even incorrect information. Getting this fixed before you apply to refinance could be the difference between your refinance loan being approved or declined. Visit the Australian Government Money Smart website for more information on getting a credit report: https://moneysmart.gov.au/managing-debt/credit-scores-and-credit-reports

2. Consider the pros and cons of debt consolidation

If you’re struggling to juggle multiple high-interest repayments (in addition to your mortgage), then a refinance loan that incorporates debt consolidation may help you to get things back under control. But there are always positives and negatives to any form of personal debt consolidation, so take the time to talk things through with one of our experienced brokers. We can run the numbers for you to assess whether debt consolidation will be a good long-term financial decision.

3. Compare fixed vs. variable interest rates

With the Reserve Bank’s official cash rate sitting at a historic low of just 0.10%, interest rates in Australia have never been lower. So, while you may have been tempted to stick with a variable interest rate in the past, now could be the perfect time to lock in a refinance loan with a fixed interest rate. Opting for a fixed interest rate provides reassurance that your repayments won’t increase over a set period, even if the official cash rate starts to go up again.

4. Think about which loan features will be most beneficial

When you first applied for your mortgage you may not have had any need for a home loan with an offset account or redraw facilities. But now that you’re refinancing, it’s worth considering if certain mortgage features will help you to work towards future financial goals. For example, an offset account may help you build savings while still lowering the overall interest, while a redraw facility may be useful for carrying out some much-needed renovations. Our team of brokers can talk you through the different mortgage features that are available and help you to find a refinance home loan that couples a great rate with great features.

5. Try to compare complete mortgage products, not just interest rates

It may seem easier to just focus on the numbers, but to get the best refinance home loan to suit your needs it’s important to look beyond the basic figures. For example, some mortgage lenders will offer low-interest rates, but they only operate as an online business. Other lenders may have a slightly higher interest rate, but the loan may come with perks such as free redraw facilities.

6. Be prepared for your property appraisal

An important part of any refinance is the appraisal of your property’s current value. This will determine how much equity you have available, which will, in turn, have a big impact on what kind of refinance home loan you’ll be eligible for. So, even though you’re not selling your property, make sure that it’s looking its absolute best for the appraisal. Simple steps like weeding the garden, decluttering a room or applying a fresh coat of paint can make a real impact on your property’s perceived value.

7. Keep an open mind

When you start to consider refinance home loans you may come across some lenders that you’ve never heard of before. Try to keep an open mind, as limiting yourself to just big-name lenders will also limit your refinance loan options. Smaller lenders may be able to provide a higher level of customer service or a much better rate – so trust your mortgage broker and give serious consideration to all the recommended lenders.

8. Work with an experienced mortgage broker

Partnering with an experienced mortgage broker will give you a more personalised refinance service. This means you’ll be far more likely to be approved for a home loan that is an ideal fit for your current financial situation. With over 100 years of combined experience, our team at North Brisbane Home Loans is committed to always delivering the best possible outcome for our clients.

To find out more, make an appointment with one of our refinance mortgage brokers in Brisbane today by calling ph.: 07 3889 9719.