What is refinancing?

Refinancing is when you change your current home loan to a new one that satisfies your current financial situation. It can either be done internally (with the same lender) or externally (with a different lender).

Will refinancing save me money?

The most common reason consumers choose to refinance is to gain better interest rates. However, make sure you tally up all the fees involved in switching loans to see if you are saving a enough to make the process worthwhile.

What are the fees involved in switching my mortgage?

Although exit fees were abolished in Australia in July 2011, fixed agreements made prior to this date may still incur an exit fee. Other fees to take into consideration include, but are not limited to, valuation, settlement and establishment fees, as well as paying the non-transferable lender’s mortgage insurance again if you are borrowing less than 80 percent.

How much money can I borrow when refinancing?

The amount varies for each individual as it is based on income and current financial situation. Using an online calculator can give you a ballpark amount, but for a more accurate figure, speak to a broker.

What are the benefits of refinancing?

Refinancing can allow you to access the equity of your home to cover major costs such as school fees or a family holiday. It can also allow you to renovate your property which could in turn add to its value.