20
May, 2022
If you’re looking at refinance home loans or exploring mortgage options in Brisbane, North Brisbane Home Loans is the best refinance mortgage broker of choice. There are many reasons to consider home loan refinancing, from securing a better rate or lower monthly commitments, changing the type or term of your home loan, or purchasing your second home or investment property. But refinancing a home loan also raises a lot of questions: How often should you refinance? What are the pros and cons of refinancing? How much can you actually save by refinancing? How much equity do you need to refinance? And perhaps most importantly, what can you do to ensure you get the best refinance deal to suit your current financial situation?
What is Home Loan Refinancing?
Fortunately, if you have questions about refinancing your home loan, then the experienced team at North Brisbane Home Loans are happy to help. We understand that refinancing a home loan is a big decision that needs to be seriously considered, so you won’t ever feel rushed when you’re dealing with our refinance mortgage brokers. Instead, we’ll take the time to talk you through the whole refinancing process, consider your unique circumstances and future financial goals and then investigate which products will deliver you the best results. And, if at the end of all that analysing, we determine that your best option is to stay with your current lender, then we’ll advise you to do exactly that.
At North Brisbane Home Loans, we’re committed to making the refinancing process as hassle-free as possible, to achieve a better result for you personally. To find out more about how a refinance home loan could benefit you, contact our friendly and professional team of refinance mortgage brokers in Brisbane today.
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.
North Brisbane Home Loans has more than 90 years’ combined experience and can provide expert advice on your options for refinance home loan.
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
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!
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.
Contact North Brisbane Home Loans
If you’re looking at refinancing your current home loan, the experienced mortgage brokers at NBHL can help find a tailored loan solution for you.
Contact our professional and friendly team of expert refinance mortgage brokers today!
Frequently Asked Questions For Refinancing Your Home Loan
Is it hard to refinance a mortgage?
Refinancing a mortgage can be a simple and straightforward process – but only if you’re getting the right advice and you’re dealing with an experienced refinance mortgage broker. Essentially, when you decide to refinance you are taking out a new home loan to pay off your existing mortgage. The team at North Brisbane Home Loans will be able to talk you through the whole process, help you determine whether a refinance loan is the right financial choice and facilitate the application should you decide to go ahead with refinancing.
What is the process for mortgage refinancing?
The process for refinancing will likely be similar to when you first took out the home loan.
- Start by talking to a broker. Fill them in on details of your current mortgage, such as how much you owe, the length of time remaining on your mortgage, current interest rates, and any extra loan features. Be sure to mention any other debts you may have, your employment status, and usual living expenses. Explain what it is you hope to achieve out of the refinance. Are you looking for a lower interest rate? Do you want better features? Would you like to increase or decrease your repayments?
- At North Brisbane Home Loans, we then take this information and use it to compare which available products would be most beneficial for achieving your refinance goals. We don’t just look at which lender is offering the lowest interest rate – we’ll take into consideration things like exit fees, setup costs, length of the mortgage, and any terms or conditions that may negatively impact your financial situation.
- Once you have all the information, you’ll be better equipped to make an informed decision about refinancing. Our brokers will happily take the time to discuss the particular pros and cons of various refinance home loans to ensure that you’re 100% happy with the outcome.
- If you decide to move ahead with refinancing, then we can get the ball rolling (as soon as you’re ready to proceed). The refinancing process usually begins with a property appraisal to determine your current equity. We can then get all the documents in order and your application signed and ready to be submitted to the lender.
- Once approved, the refinancing process can normally be completed within 30 days, although this will depend on the lenders involved.
How often should I refinance my home loan?
Gone are the days when a person was expected to sick with the same mortgage lender for the duration of their home loan. The average Brisbane home loan is 30 years – that’s a very long time. Over the course of 30 years, you’ll experience changes in your employment, your family situation and your financial goals. Your property value may go up or down and the economy will have a changing impact on what interest rates are being offered. This has become particularly true since COVID began – interest rates are at historic low levels and yet the Brisbane property market is tipped to experience strong growth over the next few years. We recommend that home loans be reviewed every 2 years to ensure you’re continually getting the most out of your mortgage.
When is the right time to refinance a mortgage?
While this will depend on a range of individual factors, it’s important not to wait too long before you decide to refinance. For example, once your initial fixed-rate period ends, you may automatically be switched to a much higher variable rate. This can result in a substantial increase in your mortgage repayments. Don’t wait until meeting your repayments becomes an issue – contact North Brisbane Home Loans and make an appointment to discuss the potential benefits of refinancing.
How much can I save by refinancing?
How much you can save by refinancing will vary based on your current interest rate, your mortgage balance and whether or not you’re able to make additional repayments on your home loan. But for many homeowners, the savings can be substantial. For example, if you have a mortgage balance of $450,000, a fixed interest rate of 3.72% and 28 years remaining on your loan, your average weekly repayments will be about $498. Refinancing to a rate of 1.9% would lower your repayments to just $399, resulting in a saving of $5,148 in the first 12 months alone. And if you refinance to the lower rate but continue to make the same repayments as previously ($498 per week), you’ll save an estimated $33,971 in interest and reduce the length of your home loan by 6.9 years!
Can I consolidate personal debt when I refinance?
If you have high personal debt (such as car loans, personal loans, or credit cards) then you may be able to consolidate this debt as part of a refinancing arrangement. This can make debt easier to manage (reducing the number of repayments you need to make each month) and will minimize the amount of interest you’re paying each month (particularly if you have a lot of debt on a high-interest credit card).
Will I have to contact my existing lender if I refinance?
If you decide to move forward with having North Brisbane Home Loans submit your refinance home loan application, then don’t worry – you won’t have to break the news to your current lender! Once you give us your permission to act on your behalf, we’ll be able to contact your current lender directly to arrange for the mortgage transfer.
How much equity do I need to refinance?
Equity is the percentage of your home that you are deemed to own outright. For example, if you purchased a home for $400,000, with a $360,000 mortgage, then your equity is just 10%. But after several years of repayments and an increase in property values, this may increase to 40%. You would then have substantially more equity than what you started with. And the more equity you have, the greater your ability to negotiate for a more favourable home loan. Ideally, for refinancing you’ll want to have at least 20% equity to avoid having to take out Lender’s Mortgage Insurance. For more information about how much equity you would need to refinance, contact one of our experienced brokers.
What are the most common reasons for refinancing?
People choose to refinance for a wide range of options, from accessing equity to reducing interest rates. The most common reasons for refinancing in Brisbane include:
- Switching from a higher interest rate to a lower one (with the official RBA cash rate at historic lows, many Brisbane homeowners have recently chosen to refinance for this reason).
- Consolidating large amounts of personal debt (such as high-interest credit cards).
- Gaining access to a greater range of loan features (for example, an offset account or redraw facilities).
- Using equity for home renovations or to finance a new purchase (such as an investment property).
What else should I know about refinancing?
If you want to make positive changes in your financial situation then refinancing can be a fantastic option. But, as with any big monetary decision, it’s important to analyse whether the pros will outweigh any cons. For personalised refinancing advice from an experienced professional, contact North Brisbane Home Loans today.
Refinance Home Loan
Book a Free Home Loan Refinancing Consultation
To book free and home loan refinancing consultation, or for expert mortgage broker advice to help you buy your first home, contact the team at North Brisbane Home Loans.
