latest blog articles

HOME > BLOG > Latest Blog Articles > Quick tips for refinancing your home loan

Time to refinance your home loan? Whether you choose to refinance due to a change in circumstance, to realise an opportunity, or because you think your home loan could be in better shape, you’ll find these tips helpful.

Know the current price-tag

  • How much your home is worth is the first thing to find out. Regardless of why you’d like to refinance, the value of your home will play a key role in what you can achieve. For example, if you’d like borrow more for other purposes like property investment or debt consolidation, the value of your home compared to the size of your current home loan, will determine how much equity you have to work with.

  • To get an idea of what your home may be worth, have a look at the valuations of similar properties that have recently sold in your area. A bit of desk top research using one or more of the many online tools available is a good place to start.

Do the numbers

  • Before you make the decision to refinance your home loan, it’s essential to know what it will cost. Find out what the fees would be to exit your existing home loan; what it would cost to set-up your new loan; and what legal and Solicitor fees you could expect.

  • If you’re refinancing to save interest over time, make sure you include the exit, set-up and legal costs when comparing your existing home loan to what a new lender is offering. If the costs to refinance are high, you might find that there is little or no benefit in moving your home loan.

  • If you’re refinancing for debt consolidation, you’ll want to be very clear about the total cost of both moving your home loan and exiting your other loans. Aside from alleviating the stress of managing multiple loans, paying less for your old debt is a key benefit of consolidating other loans into your mortgage. Be clear about the total upfront costs and make sure you know how much you’ll pay in interest overtime to service the debt through your new home loan.

Applying to refinance your home loan

  1. Choose one preferred lender before submitting your application.

    Applying with multiple lenders can damage your credit record. Every time you make a lending application it is recorded on your credit report as an enquiry. If there are multiple enquiries on your report, lenders may interpret this to mean that you’re taking on a lot of debt.

  2. Don’t apply for more credit while you’re refinancing.

    Even if you don’t use the limits on store cards and credit cards, the available amount of credit will impact your affordability. Also, if you’re not using the credit available on any current cards and personal loans you have, it can be a good idea to contact the lender and reduce the limits before applying to refinance your home loan.

  3. Don’t change jobs.

    If you’re planning to refinance in the short term but might also be considering a new job opportunity, think about the timing. Different lenders have different criteria, but in short, all will want to see that you have stable employment and reliable income.

  4. Be prepared with the paperwork.

    Applying for a loan means gathering a few documents. Start a file and begin collating payslips, bank statements and home loan statements; it will speed up the process and minimise the number of times you have to go back-and-forth with your chosen lender.

Like to find out more about your home loan refinance options?

  • Get in touch with our Lending Specialists. Whether due to a change in your circumstances; for debt consolidation; to realise an opportunity like property investment; or simply to review the performance of your current home loan, we can help you assess your refinance options.

  • Use a calculator to get an estimate of how much you can borrow.
    Try one here

  • See if you qualify. To get a more accurate idea of how much you can borrow with RESIMAC Direct,
    click here

  • Call our Lending Specialists and they can do the calculation for you over the phone plus answer any questions you have at the time. Talk to us on 0800 466 656