Home loan refinance FAQs
At loans.com.au, we use a fast process to refinance your loan called FastTrax Refi.
FastTrax Refi allows you to pay out your lender quickly. You don’t even have to contact your old lender - we do the hard work for you. You simply apply online and talk to a lending specialist, upload your documents and then your work is done!
From the time you return the completed mortgage documents and Loan Agreement to us, it only takes days to switch to loans.com.au.
For more information, follow our step by step guide to how refinancing your home loan works.
It's a good idea to review your mortgage to see if it is still suitable for your circumstances and still represents good value. Whatever your situation, refinancing your home loan can have benefits including:
Saving money in the long run with a better interest rate,
Consolidating multiple debts onto your cheapest interest rate,
Paying off your home loan faster if you decide to change your term.
With that in mind, you need to think carefully if it makes financial sense to replace your old home loan or not, so before refinancing, consider:
- Costs – loan application fees for new loans, mortgage discharge fees, or break costs if your home loan has a fixed rate.
Lenders Mortgage Insurance (LMI) – If you have less than 20% equity in your home, you may have to pay Lenders Mortgage Insurance. You cannot transfer the existing LMI to the new loan, despite the fact that your previous lender is no longer at risk.
Read more about when to refinance your home loan.
The equity in your home is the difference between its market value and your remaining home loan balance.
To put it simply, this is the value of what you currently own in your home. For example, the market value of your home is $350,000 and you still owe $200,000. When you subtract the loan balance from your property value, you have equity of $150,000.
The best thing about building up your equity is that it can be accessed through home loan refinancing, allowing you to use your home as security and use these funds for other expenses.
Refinancing can be a way to use the equity in your home to invest in home improvements, or in other real estate. However, keep in mind that increasing your loan will mean an increase in your loan repayments.
Find out more about accessing equity to buy another house.
You will need to supply documents to prove you can afford to repay the loan, including:
PAYG Payers - last two payslips
Self employed - last two years tax returns with an ATO Notice of Assessment
Three months of bank statements
Evidence of any rental income
Six months of statements for your current home loan
Three months of statements for any loans you are consolidating (ie. credit card debt)
A copy of your current Rates Notice and evidence of payment
On our end, we’ll arrange a property valuation, credit assessment and all the paperwork with your current lender.
Get more information on what documents you need to refinance your home loan.
At loans.com.au, we charge no ongoing, monthly, or annual fees, and if you refinance to us the only costs you'll pay are a one-off $300 settlement fee plus a valuation fee, which for a standard property in a metropolitan area in a major city starts at $220. Depending on where you live, there may also be external government charges.
It's important to do thorough research so you know exactly how much you'll be paying to refinance your loan. Common refinancing fees and costs can include:
- Mortgage application fee
- Property valuation fee
- Discharge fee
- Break costs
- Settlement fee
- Lenders Mortgage Insurance
- Exit fees
- External government charges
According to our customers, the application process is “quick, smooth and easy”, and communication is “clear, transparent and professional.” Get started on your online application today.
Instantly calculate what your repayments will be depending on how much you borrow, the interest rate on the loan and the repayment frequency.
Use this calculator to estimate how much sooner you could pay off your loan, and how much interest could you save on your loan over time by using an offset sub-account.
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Calculate in just a few minutes how much you can borrow for a home by entering your income and expenses.