Refinance Your Home Loan

There are many reasons you should consider refinancing your home loan:

• Get a cheaper interest rate and lower your monthly repayments.
• Access equity to buy an investment property, renovate, build and more.
• Bring your high-interest debts like credit cards, personal loans and car loans into a debt consolidation home loan.
• Save your home if your home loan is in arrears.
• Refinance from a specialist lender to a major lender after you’re past your bad-credit issues.
• Take advantage of tax benefits.
• Refinance to a home loan product that helps you repay your home loan faster.
• Refinance to grow your business.

Find out more by reading our page on the benefits of refinancing.

The amount you can save by refinancing depends on various factors, such as your current interest rate, the new interest rate you qualify for, the remaining term of your loan, and any associated fees. You can use our home loan refinance calculator to find out how much you can save by refinancing.

Generally, you need at least 20% total equity in your home to refinance the loan. Lenders typically let you borrow a maximum of 80% of your property’s value on a standard mortgage so most homeowners begin with enough total equity to refinance. Some lenders will let you borrow up to 95% of your property value if you pay Lenders Mortgage Insurance (LMI) or if you have a particularly impressive credit score . If you have less than 20% total equity in your home, you may still be able to refinance but you may have to pay LMI again. Are you eligible to refinance?

• You owe less than 80% of the property value: Ideally, you should owe less than 80% on your mortgage; otherwise, you may have to pay thousands in Lenders Mortgage Insurance (LMI).
• You are on variable rate:Variable-rate loans offer more flexibility when refinancing, allowing you to avoid exit fees associated with fixed-rate loans.
• You can refinance out of a bad credit loan:You can refinance a bad-credit home loan to a major lender if your Loan-To-Value Ratio is 80% or less and there is no longer a default on your credit file.
• You can refinance from a low-doc to a full-doc:If you had a low-doc mortgage but now have sufficient income evidence, you may qualify for a standard home loan at a better interest rate.

Refinancing costs vary, but they range between $900 and $3,500. The costs can include discharge fees, break fees, application fees, valuation fees and title search fees. Learn more about the costs of refinancing.

Here are some things you should consider before refinance:

• Be clear on why you want to refinance. It may not always be to get a lower rate, but to get a more flexible loan or even to access equity for a renovation.
• Consider your future plans and think about your long-term financial goals. Think about how refinancing fits into your overall financial strategy.
• Evaluate your current financial status, including income, expenses and credit score, to determine your eligibility and the potential impact on your finances.
• Research various lenders and loan options to find the best fit for your needs. Consider factors such as interest rates, fees and repayment terms. This is when the services of a trusted mortgage broker like Home Loan Experts will be helpful.
• Determine the total cost of refinancing, including fees and closing costs, and compare it with the potential savings over time to ensure it’s financially beneficial.