Can I Refinance From Low Doc To Full Doc?

Yes, you can!

The majority of lenders have no restrictions on cash out under 80% of the property value or 80% LVR.

A select few can even lend up to 95% for refinance and cash out (conditions apply).

Some lenders allow you to consolidate up to five unsecured debts as long as the total Loan to Value Ratio (LVR) does not exceed 80%.

Unsecured debts include credit cards, personal loans and car loans.

However, if you have more than five debts to consolidate, and the LVR is more than likely to be over 80%, please speak to one of our specialists today to find a solution.

We have lenders that can refinance business debt up to $1 million.

Home loan refinancing costs vary from lender to lender and also depend on your overall situation and the product you're applying for.

These costs include:

• Discharge fees: Your existing lender will generally charge around $150 to $300 to release you from the mortgage.
• Application fees: There are no upfront costs with some mortgage products.
• Property valuation fee: This fee is paid to a professional to value your property to ensure that it is an acceptable security that meets the bank's lending policies.
• Lenders Mortgage Insurance (LMI): Typically only charged if your refinance comes in at over 80% of the property value.
• Ongoing fees: These costs include monthly or annual account-keeping fees and redraw fees.
• Break costs: Charged if you refinance within a fixed term.

David is self-employed and has been running a plumbing business since 2015.

Two years ago he wanted to purchase a property to live in.

At the time, his ABN was only registered for one year and he didn't have his financials ready so he applied for a low doc loan.

He borrowed $500,000 to purchase a property valued at $625,000 at an interest rate of 4.9% per annum making principal and interest (P&I) repayments. He was paying $2,654 per month.

Having made perfect repayments over the past two years and built a successful business, David wanted to refinance and take some equity out to upgrade his car.

He could now provide two years worth of financials to apply for a full doc mortgage at a much sharper rate.

His current loan balance was $486,000 and his property value was $680,000, bringing his Loan to Value (LVR) to around 70%.

Cashing out $58,000 to purchase a new car, this brought his total LVR to 80%.

He approached his mortgage broker who was able to get him approved for a full doc loan.

David was able to provide two years tax returns for the company and personal plus two years Notice of Assessment.

His broker found a lender offering an interest rate of 3.69%.

After refinancing, his monthly repayments reduced to $2,501, saving him more than $150 per month or $1,800 per year.

If you are thinking about switching from low doc to full to get a sharper rate, please contact us today on 1300 889 743 or fill in our online enquiry form today.