When you’re busy with life, refinancing can seem like a hassle. However, we are here to guide you through the process, so it doesn’t have to be!
Refinancing may allow you to switch to a more competitive home loan, thereby potentially saving you money in interest.
It can also help you achieve other goals, like using different finance options to renovate your property or consolidating your debt and paying it off more efficiently. You may even consider refinancing to access equity to buy an investment property or another big-ticket item like a pool.
Here are the steps involved in the refinancing process:
Step 1: Work out your financial goals
Do you want to find a loan with a lower interest rate? Perhaps you’d like to explore some of the interest-saving loan features that are available nowadays, like offset accounts and redraw facilities?
It’s important to understand what your financial goals are so that we can help you to access the finance you need to achieve them.
Step 2: Compare home loan options
Next, it’s time to do some research.
Trying to understand all the different home loan options available and consulting with different lenders can be time-consuming and overwhelming. Instead, get us to do the hard yards for you.
We can explain which home loans may be suitable and help you narrow down your options.
Step 3: Submit your loan application
Once you’ve decided which home loan is right for you, we’ll take care of your mortgage application.
Just like when you applied for your original loan, you’ll need to supply certain documents. These usually include identification, proof of income, home loan statements, and records of living expenses, liabilities and assets. The new lender may also require a property valuation. This helps them to determine how much they are willing to lend you.
Step 4: Discharge your existing loan and settle your new one
When your chosen lender approves your new loan, we will let your current lender know you plan to discharge, or pay out, your existing loan.
We’ll keep you informed throughout the settlement process and let you know when your new lender has paid out your old loan.
Step 5: Start making repayments
After settlement, you’ll receive documentation explaining the ins and outs of your new loan. Then, it’s time to start making repayments.
All up, for most cases the process of refinancing usually takes anywhere from four to eight weeks. The timeline depends on the lender, how quickly you submit the required paperwork and the strength of your application. Some lenders may offer a fast-tracked service.
Ready to get started?
As you can see, refinancing may not be as hard you think. If you’re interested in comparing what loan options are available for you, get in touch with Nicki today at nicki@keywestfinance.com.au
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