The Home Loan Refinance Process

While home loan refinance options might feel overwhelming at first, the reality is that ripping the Band Aid off has the potential to save you thousands. 

As such, this is where home loan refinance options come in. A lot can change in a year, which is why conducting a home loan review is always a good idea to ensure that your mortgage is performing at its best. Depending on your individual set of circumstances, your mortgage broker may suggest swapping to a more favourable home loan product, which is otherwise known as refinancing – but what does the process involve?

The Home Loan Refinance Process

The Concept Of Refinancing Explained

Whether we like it or not, banks aren’t generally in the habit of checking in with their customers and offering a discounted interest rate, which is why consumers need to be proactive when the market conditions change. While the mortgage you originally signed up for may have been a great fit at the time, there’s a wide variety of circumstances to consider when evaluating if it’s still the best loan product for you or not. 

Refinancing refers to the process of paying out your current home loan by taking out a new loan. While this can be with the same lender, it is also common to change to an entirely different lending provider for a better interest rate, lower fees or generally more favourable loan terms overall.

Those looking to refinance their existing mortgage are increasingly carrying out much of their research online by comparing home loans to review what the market has to offer, as the benefits of doing so can include – 

  • Securing a more favourable interest rate
  • Changing your terms to fixed or variable interest rates
  • Gain access to home equity 
  • Consolidate existing debt 
  • Unlocking certain home loan features 
  • Some lenders even give you a cash rebate of to refinance through them of around $2,000 to $4,000

However, before you make the swap, it’s important to remember that refinancing isn’t free. Depending on the value of your existing home loan, expect to be hit with extra charges linked to application fees, valuation fees, discharge fees and more. If your current mortgage is on a fixed interest rate, there are also additional exit fees to contend with, and can easily amount to a few thousand dollars. 

Needless to say, there’s a wide variety of factors to consider before you dive into a new home loan. Your current credit score, property value, the outlook on interest rates and new loan terms all have a role to play when it comes to determining if refinancing will leave you in a better position or not, so it’s always worth speaking to the professionals before you make the commitment.

As the founder of Brisbane based Madd Loans, George Samios has seen his fair share of unfavourable home loans. Instead of jumping on a home loan refinance option that looks good on face value, he helps customers conduct and make informed financial decisions and see if their home loan product is still right for them.

“Competing on variable-rate mortgages generally makes sense for lending providers, as they can always increase their rates later on – something they cannot do for fixed-rate customers. A home loan review is important to ensure that borrowers minimise their exposure to rate hikes and potential risk, particularly given the current uncertainty surrounding the cash rate. If you have the right finance partner, a home loan health check should be a positive and empowering experience, and not something to shy away from.”

Although many homeowners put off refinancing out of concern that the process is time consuming  or requires a lot of work, it’s not a hard process and the benefits could be substantial. In fact, it can be as simple as meeting with a reputable mortgage broker, providing some documentation and making a decision – but where do you find such a partner in finance?

Partnering With The Home Loan Refinance Professionals 

Navigating the complex world of home loans has long been regarded as stressful, frustrating and time consuming – but the good news is that it doesn’t have to be.

Since their inception in 2012, the team at Madd Loans have worked tirelessly in providing over 2,000 Queenslanders with finance options to help turn their dreams into reality. With the entire brand being built on referrals, owner George Samios takes great pride in making the loan process both fun, educational and stress free – and he has a swag of awards to prove it.

If thinking about your financial future strikes a chord with you, then it might be time to speak to a professional. Whether you’re chasing mortgage solutions or a financial fairy godmother, the team at Madd work together as a collective to turn your goals into reality.