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Home Loan Refinancing

The joy of refinancing home loan

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Refinance Your Home Loan QLD

Home loan refinancing has become a hot topic in recent years, thanks to repeated interest rate cuts and soaring property prices. The Australian Bureau of Statistics recorded that $14.88 billion worth of mortgages were refinanced during May 2021 – that’s a 76% increase in just over two years. So, if you’ve been preparing to refinance your home loan, you’re certainly not alone! And while switching a home loan may sound complicated, it doesn’t have to be. The key is to use an experienced refinance mortgage broker. 

If you want to refinance a home loan in QLD, then it’s important to consider all of the relevant factors (not just which lender has the lowest interest rates). A refinance mortgage broker at Coronis Finance can help you to do this. We’ll start by completing a thorough assessment, taking into consideration your current financial position and the details of your existing home loan. We’ll then analyse the different home loan products available to ensure that switching your home loan will definitely be in your best interests. And we’ll be on hand throughout the entire process to answer all your questions, from “is now a good time to refinance my home loan?” right through to “should I refinance my mortgage for a cashback deal?”

To help you get started on your home loan refinancing journey, we’ve compiled a simple step-by-step guide to refinancing, which you can download for free.

What is Home Loan Refinancing? 

A home loan refinance is when you change from your existing home loan to a new home loan. You’re essentially applying for a new mortgage, which is then used to pay out your existing mortgage. While this may sound like a bit of a redundant exercise, refinancing a home loan can save you money, give you access to better loan features and even help you pay off your mortgage sooner. 

What is the process to refinance a home loan in QLD? The first step involves assessing your current home loan to see just how competitive your interest rate is and how compatible the structure and features are with your current financial needs. The next step involves comparing available offers from a wide variety of lenders and calculating the cost of refinancing (to see whether refinancing your home loan is going to be in your best interests). Once you’ve determined that you want to move ahead with a home loan refinance, the next step is completing and submitting all of the relevant paperwork. Once your home loan refinance request has been approved, your new lender will contact your existing lender and ask them to discharge your old mortgage. Once the title has been transferred, and your existing home loan has been repaid in full, you’ll start making repayments to your new mortgage lender.

How Can a Refinance Mortgage Broker Assist with Refinancing?

The whole point of refinancing a home loan is to get you a better mortgage deal. This is why it’s so beneficial to use an experienced refinance mortgage broker. The friendly team at Coronis Finance can assist you with home loan refinancing by: 

1. Doing all the hard work for you

Refinancing involves a lot of research and paperwork. Not only is this incredibly time consuming, but even the smallest of errors could result in your application getting rejected. Your Coronis Finance broker can handle all of this for you, ensuring the process is completed as efficiently as possible, with minimal stress (and no mistakes!).  

2. Comparing home loans from a wide range of lenders

The team of refinance mortgage brokers at Coronis Finance have access to an extensive lending panel. This allows them to compare mortgage products from a great range of lenders, ensuring that you have access to a wide selection of competitive home loans. 

3. Identifying which mortgage product is the best fit for your needs

When comparing refinance home loan deals, your Coronis Finance broker will take into account your unique circumstances. This will help them identify which home loan is most suitable for you (and your future financial goals).  

4. Considering all the relevant factors

Finding the right refinance home loan deal is about a lot more than just comparing interest rates. Your Coronis Finance broker will also look at any ongoing fees, the loan structure, what features are included and whether the savings generated by refinancing will be sufficient to offset any loan discharge costs. By considering all the relevant factors, they can then present you with a complete picture of what your new home loan will look like. 

5. Protecting your credit rating

If your home loan refinance application gets rejected, this will have a negative effect on your credit rating (which could make it more difficult for you to refinance in the future). The refinance mortgage brokers at Coronis Finance are committed to protecting client credit ratings, so they’d never recommend a home loan that you’re unlikely to be accepted for.

What Are the Benefits of Refinancing Your Home Loan?

When you refinance your home loan, you can benefit in a number of different ways. These include: 

1. Saving a substantial amount on your minimum monthly repayments:

Refinancing to a lower interest rate can deliver real and immediate savings on your minimum monthly repayments. If you had a $500,000 home loan, on a 30-year term, with an interest rate of 4.1%, then you’d be paying around $2,416 per month. By refinancing to a fixed interest rate of 2.29%, your repayments would drop to just $1,922 per month. That’s a saving of almost $6,000 in the first year alone!

2. Switching from a variable to a fixed interest rate

Most lenders will automatically switch borrowers over to their standard variable interest rate once the fixed rate term has expired. This could result in you paying a lot more interest than you need to be. By refinancing, you can move from the default variable to another fixed low interest rate, locking in the same repayments for a set period of time.  

3. Obtaining home loan features that are more suitable to your needs

Mortgages come with a variety of different loan features, such as a redraw facility, the ability to make additional repayments or access to an offset account. These features may not have been particularly useful when you first took out your home loan. But now, some of these loan features could actually make it easier for you to achieve specific financial goals. When refinancing your home loan, a Coronis Finance broker can help you determine which home loan features will be most beneficial. 

4. Accessing the equity in your property

The equity in your current property can be calculated by subtracting the balance of your mortgage from the total property value. For example, if your property is valued at $620,000 and your current mortgage balance is $400,000, you have $220,000 worth of equity. Refinancing can give you access to these funds, allowing you to complete a long-awaited renovation or consolidate personal debt (such as high-interest credit cards). 

5. Reducing your mortgage term

If you’d like to pay your mortgage off faster, then you have the option of refinancing to a new home loan with a reduced loan term. If you had a $400,000 home loan with an interest rate of 2.3% and a 30-year loan term, you’d end up paying $154,114 worth of interest over the total life of the loan. By reducing your loan term to 25 years, you could save yourself $27,780 worth of interest.

Frequently Asked Questions About Refinancing Your Home Mortgage

Refinancing a home loan is a big financial decision with long-term ramifications. So, it makes sense to ask a lot of questions. At Coronis Finance, we’re more than happy to answer any refinancing questions you may have. Here are some simple answers to the top 5 most frequently asked questions we typically receive about refinancing a home loan:

Can I refinance my home loan but stay with the same lender?

Yes, you can. This is good news if you’re really happy with your current lender, but you want a more competitive interest rate or a more flexible loan structure. We can let you know what loan products are currently available with your existing lender and how these compare to the products on offer from other lenders.

How much will it cost to refinance my mortgage?

The cost of refinancing will vary, depending on several different factors. You may get charged a termination fee, especially if you choose to refinance before your current fixed term expires. However, the savings you can obtain by refinancing will often outweigh any fees the lender may charge you. To find out more about the potential cost of refinancing your mortgage, contact Coronis Finance today (and don’t worry, we won’t charge you a thing for our services!).

Is now a good time to refinance my home loan?

The official Reserve Bank of Australia (RBA) cash rate is currently sitting at a historic low, and the RBA has stated they have no intentions of raising it until 2024 at the earliest. As a result, there are currently some excellent refinance deals available, with fixed low interest rates. However, it’s always important to do a complete assessment of your current circumstances before deciding to move ahead with refinancing. Talk to a Coronis Finance broker for some personalised advice.

Should I refinance my mortgage for a cashback deal?

There is currently a lot of competition amongst lenders, as more homeowners are choosing to refinance rather than stick with an unsuitable home loan. As a result, several lenders are offering tempting cashback refinance deals (some as high as $3,000). Cashback deals can be an excellent way to offset the costs involved in refinancing, but don’t forget to do a thorough assessment for suitability and long-term savings. If a cashback deal doesn’t provide the loan features you need or if it’s paired with a needlessly high interest rate, then you may be better off choosing a more suitable loan product.

How long will it take to refinance my home loan?

The time it takes to refinance a home loan will mostly depend on the lender and how long it takes them to process and approve your application. This can be as fast as 1 week, or it could (in extreme cases) take 6+ weeks. On average, most refinance home loans take between 2 and 4 weeks to finalise. To prevent any unnecessary delays, make sure your paperwork is up to date and that you apply through an experienced refinance mortgage broker.

Book a time to speak with our refinance mortgage broker in Queensland. We’ll get right back to you.

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