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Refinance Your Home Loan

Refinancing is when a homeowner pays off their existing home loan and replaces it for another. There are many positives to refinancing as a financial planning strategy, including lower interest rates, equity release options, and shorter repayment terms. If you’re a homeowner and considering a new loan, Reventon Finance can guide you to the most appropriate deal that works for your financial goals.

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Mortgage Refinancing Explained

At Reventon Finance, our mortgage brokers live and breathe home loans every day. With a collective over 50 years of experience, we have assisted thousands of Australians in finding the best
home loan to suit their needs.

When you first got your mortgage, chances are interest rates were competitive and the loan terms were highly acceptable. If you’re like many home owners, you probably haven’t thought much about your mortgage after you got it until the interest rates began to rise in 2022.

The change in interest rates has also seen loan terms and features change. With so many offers and options available on the market in 2023, refinancing your mortgage coud be a great way to free up some cash, save money or start your property investment journey. The Reventon Finance team can help you with a free home loan health check to ensure it’s the right one for you!

Refinancing refers to the process of paying out your current home loan by taking out a new loan, either with your existing lender or through a different lender.

With consistently rising interest rates, now is a great time to assess your home loan to ensure it’s the right one for you.

There are a number of pros and cons to refinancing and a lot will depend on your personal situation.

There are many reasons where refinancing your mortgage might be seen as beneficial, depending on your individual circumstances.

Some of the most common reasons people choose to refinance include:

Cheaper interest rates – With rising rates on a monthly basis since April 2022, now more than ever, the most common reason people consider refinancing is to take save money and reduce monthly repayments as much as possible compared to their current lender.

Change rates – You might want to switch from a variable rate to a fixed rate, or vise versa. A fixed rate home loan locks in your interest rate for a specified period of time, so you know that you wont be affected by future interest rate rises. However, variable rate loans tend to offer more flexibility and features than most fixed rate home loans. If you’re not sure which option is right for you, you might prefer to split your loan, so that some of your loan balance is on a fixed rate, while the rest of your loan remains on a variable rate.

Access different loan features – Not all home loans offer the same features so refinancing could give you access to a variety of different options. For example, you may want access to a redraw facility, or perhaps you would like an offset account. When refinancing we can find a loan that meets you current needs.

Unlock equity – Refinancing your mortgage can give you access to the equity you have in your home. You can use equity to pay for home renovations, go on a dream holiday, purchase a new car or use it as a deposit for an investment property. Whatever the reason, refinancing could offer the option to access the equity you need.

Debt consolidation – If you have other types of debt with higher interest rates such as car loans, personal loans or credit cards, you might be able to roll these debts into your mortgage. Not only could you reduce the amount of interest charged on your outstanding debts, but it is possible to reduce your total monthly repayments too. It will also streamline your banking as you will only have one repayment to keep track of each month instead of several.

Before proceeding with refinancing your home loan, it is important to understand the costs associated.

The last thing you want is to pay more than you expected by switching mortgages. Paying out your old mortgage and establishing a new one may incur some costs you might not have foreseen. These costs will depend on the lenders involved. These costs may include:


• Establishment or application fees
• Valuation fees
• Legal documentation fees
• Settlement fees
• Government and statutory fees
• Charges that may apply to specific account features
• Exit fees (exit fees are usually applied if your current loan is a fixed rate home loan and you are exiting before the fixed term ends)
• Ongoing monthly account fees
• Annual package fees
• Lender’s Mortgage Insurance (LMI) (If you borrow more than 80% of your property’s value, chances are you will be charged a LMI premium)

Mortgage refinancing can be a complicated process and that is where our professional, friendly and experienced consultants are here to help. Our goal is to make the entire refinancing process as easy and smooth as possible. 

 

  1. Make an enquiry - To start your refinancing journey with us, call us on 1300 039 376 or alternatively submit an enquiry form on our website and we will contact you. 
  2. Obligation Free chat - A friendly Reventon team member will have a brief chat to you about your current situation and financial goals. They will want to know the reason for refinancing (e.g. lower interest rate, unlock equity, consolidate debt or would like more flexibility with your loan). Understanding the reasons for refinancing will help find the right loan for your situation. This information will be passed on to one of our experienced mortgage brokers 
  3. Appointment with Reventon Finance - As we do need to physically sight clients, your appointment with a finance specialist would either be via a video call or office appointment, dependant on your location. During this meeting, your experienced mortgage broker will have a more in-depth discussion about your refinancing needs and will request documents such as identification, pay slips and bank statements. 
  4. Explore personalised lender and product options – Depending on your situation, you will likely be provided with a list of no less than 3 loans options, personalised to your needs. Your finance consultant will explain each option to you. You should carefully consider all available loan options, including interest rates, additional features, costs and aim to match your financial goals. You can then decide as to which product you would like to go ahead with that will best suit your goals and situation. 
  5. Property Valuation - Once a lender is chosen, a property valuation on your property may be required. We will organise this, if applicable.  
  6. Application paperwork - Our team will thoroughly check all your documents and will send through application and compliance paperwork for signing. Depending on the lender, more paperwork may be required, which will be advised at this stage. 
  7. Submission to Lender - Loan application submitted to lender. It will generally take between 1 – 10 days to receive an outcome depending on the chosen lender. We will always keep you updated on this. 
  8. Conditional Approval - If you are issued a conditional approval this means that the lender requires more documents/information to support your application. 
  9. Unconditional Approval - This means your loan has been fully approved by the lender. It indicates that your application is not subject to any conditions by the lender 
  10. Mortgage documents issued - Your mortgage documents will be issued either electronically or paper copy dependant on lender and our finance team will double check everything before you sign the documents. If you need help with completion our friendly team will only be too happy to assist. 
  11. Prepare for loan settlement - When your current lender has determined the exact date of settlement, they’ll issue a final payout figure for your old loan. Your new lender will agree upon a settlement date and pay out your outstanding loan balance. 
  12. Settlement - Your new lender will transfer the title deed of your property from your previous lender. You are now a customer of your chosen lender and generally new repayments will commence 1 month after settlement. 
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