How Refinancing Works

We all know that when we first get a home loan, it usually has a term of 20 to 30 years, so you’re well aware you’re making a long-term investment. However, many people don’t realise that you don’t have to use the same loan or even the same lender for the full term of your home loan. 

Instead, if you find your home loan no longer suits your situation or circumstances, you can refinance to a loan with better suited features, which may come from a different loan provider. Learn how refinancing works.

Refinancing is a simple process – we’ll take a look at the value of your home or investment property, to determine what the ‘loan to value ratio’ (LVR) is. Once we have identified a few criteria about your individual situation, we will then be able to assess which loan and which lender is best going to meet your refinancing requirements.

It’s important when you’re looking to refinance to consider which home loan features you need and which features you no longer need. We can help you to become familiar with new mortgage products that offer features that will help you achieve your refinancing goals and ultimately, get ahead financially.

After discussing your refinancing options with you, we will submit an application to the lender of the new loan product. Once the lender has approved your application to refinance, your new lender will pay out your current home loan in full and your mortgage will continue with your new lender.

When you refinance, there are additional features you can benefit from – for example you can consolidate your high-interest debts such as credit cards, into your new loan which will mean you’ll be paying this debt back at the rate of your new loan (which undoubtedly is much lower than most credit cards, store cards and personal loans).