How do I refinance my mortgage in Australia?
Thankfully, refinancing a home in Australia is a painless and quick procedure. However, it is normal to have questions and concerns, so experts recommend speaking to a lender before deciding. Many changes can drive you to look into refinancing, and it is tempting to watch the interest rate decrease as circumstances change.
When refinancing a home, the first thing you should do is look for a lender. There is nothing wrong with shopping around. The lender may be able to help you look at your initial mortgage. Some restrictions can make it hard to refinance a home, such as
- Application fees
- Break costs
- Lenders Mortgage Insurance (LMI)
- Upfront Loan Costs
Although refinancing a home can save you money in the long run because of interest rates, it is good to have some money saved for a deposit. If the deposit is less than 20% of the new mortgage, you will likely need to purchase and use an LMI. If you are unsure of the money necessary for refinancing, you can use a free home loan repayment calculator as an online resource.
After looking into the requirements, eligibility, and the additional costs of refinancing a home, your lender can discuss specific loan options. Be transparent with your lender and discuss the purpose of refinancing. Do you want a lower monthly payment? Are you looking to lengthen or shorten the years on your mortgage?
Refinancing Mortgages in Australia Conclusion
All in all, it is best to seek help from an experienced lender. Our lenders are ready to discuss your refinancing needs here at Mortgage House!