So you want to refinance but you have no clue about the whole process. The fact that you are even thinking about it is a good start. According to recent statistics refinancing is on the rise which shouldn’t be a surprise considering the record low interest rates at play.
Here are the key points on how to refinance like a pro:
Know what you want
Think clearly about why you want to refinance. Whether it be that you have seen plenty of competitive rates (which can end up saving you thousands) or you want to consolidate some debt and increase your loan size or you need to access equity to invest in another property. Whatever the reason, have a clear goal. This will help you to decide on the kind of offer or deal you want to accept.
Check out the refinance costs
With the government regulatory changes already in place banning home loan exit fees, refinancing has now become an effective way to an improved financial position. There are however some costs involved which could range from $200-$1000 for a variable loan. It is important to note that fixed rate home loans have much higher costs involved.
Have everything ready
Generally, when you are about to refinance you need to get the following documents ready:
- Bank statements (Home loan and credit cards)
- Drivers licence and Medicare card
- Council rates
Auction your home loan
Instead of doing all the hard work from researching, shopping around, calling multiple banks and brokers, filling out forms and negotiating with different people, you can now simply spend three minutes and auction your home loan at LoanDolphin and let banks and brokers fight for your loan, saving you thousands.
Start your application
Once you find the best deal by auctioning your home loan via LoanDolphin, you can start the refinance application with the bank lender or mortgage broker of your choice. If everything is in order the whole process shouldn’t take more than a 2-4 weeks. Some banks are able to complete refinance requests in a week.
Enjoy the savings
That’s basically it! 5 steps to reduce your home loan rate and you will save thousands of dollars.
If you are prepared to follow these simple steps the process won’t be daunting at all! The fact is most Australians don’t realise that they are missing out on saving tens and thousands of dollars off their current home loan rate. Check out LoanDolphin today!
Disclaimer: This blog post has not taken into account your objectives, financial situation or needs. Due to this, before acting on any general advice/information in this communication, you should consider whether it is appropriate to your objectives, financial situation or needs.