Refinancing your mortgage:

a concise guide to streamlined solutions

We help self-employed business owners and People with Uncoventional Lending Circumstances source and structure better finance, so you can potentially save thousands in interest & fees...

refinancing your mortgage:

a concise guide to streamlined solutions

The process of refinancing your mortgage involves replacing your current home loan with a new one, usually to secure better loan terms or lower interest rates, either with the same lender or a different lender.

Homeowners may be able to tap into their home equity, consolidate debt, or decrease their monthly mortgage payments.

It’s important to carefully consider your specific financial goals and circumstances before deciding whether refinancing is the right move for you.

By refinancing, you’re essentially applying for a new home loan. Typically, this is done to secure a more competitive interest rate and negotiate new loan terms with the same or a different lender.

You’ll have to provide documentation to prove your income, creditworthiness, and overall financial situation. When the LVR exceeds 80%, there might be additional fees like lenders mortgage insurance to pay when refinancing your home loan.

Key Takeaways

  • Refinancing your mortgage involves switching lenders for an external refinance or staying with the same lender for an internal refinance, replacing your existing home loan with a new one to usually improve loan terms or lower interest rates. Nonetheless, refinancing can be motivated by factors other than seeking a better rate, such as divorce, accessing cash for property investment, or financing home renovations.
  • The process requires you to compile documentation that supports your income, creditworthiness, and financial stability, your broker will be capable of guiding you through this process.
  • Depending on your unique situation, refinancing costs may include fees such as lenders mortgage insurance, which may or may not be cost effective.

Refinancing Options

Many self-employed business owners and people with Unconventional Lending Circumstances have these same questions and concerns. That’s why we developed a no-obligation Consultation where you can get the information you need to get fast approval for a better home loan.

possible reasons for refinancing?

Potential Cost Savings

Refinancing your mortgage means replacing your existing home loan with a new one. People often consider refinancing to take advantage of a lower interest rate, reduce their monthly repayments, or access better loan features. It’s essential to understand why you’re refinancing to make the best decision for your financial situation.

Understanding the Costs and Fees

When you refinance your home loan, you’ll likely encounter several costs and fees. These may include:

  • Application fee
  • Valuation fee
  • Recurring fees such as monthly or annual charges.
  • Discharge fee
  • Break fees for fixed rate loans
  • Mortgage registration fee

Your mortgage broker can present you with a cost comparison report to support the decision-making process regarding the possible value of refinancing.

Unlock Equity

Another reason some people refinance their mortgage is to access equity in their property, which could be used for various purposes such as investing in the share market or property, making improvements to their home. Keep in mind that accessing equity will increase your loan balance and, usually an increase in your repayments.

Debt Consolidation

If you have multiple debts such as credit cards, car loans, or personal loans, you may consider consolidating them into your mortgage. This can help simplify your finances and potentially lower your overall interest costs.

Home Renovations

Refinancing your mortgage has the potential to provide funds for various purposes such as home renovations, improvements, or even the construction of a granny flat. This has the capacity to boost the value of your property and enrich your living space.

Home Loan Check Up

Getting a home loan review offers the opportunity to reevaluate your current home loan and ensure it remains appropriate for your needs. Working with a Pro Options Lending Solutions can help you determine if you still have the right mortgage for your situation.

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We help self-employed business owners and People with Uncoventional Lending Circumstances source and structure better finance...

Over the past 13 years we’ve helped hundreds of self-employed business owners and people with Unconventional Lending Circumstances get home loans with better interest rates, lower fees, and more flexible conditions.

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