Guide to Refinancing Your Mortgage

Whatever change has transpired, refinancing allows you to replace a mortgage that doesn't work for you anymore.

The typical life of a mortgage is thirty years or less. Over those years, plenty of things can change. The interest rate you received from your lender may no longer be competitive or relevant, your financial situation may have changed making your current loan not suitable anymore, or maybe you need extra cash to carry out a renovation.

The main reason that homeowners refinance their mortgage is to get a lower interest rate. If you’re thinking of switching to a new loan or to a new lender, here’s a quick guide to help you out:

Should I refinance my mortgage?

As mentioned above, refinancing is a great way for homeowners to save money on their mortgage repayments. Before you decide to replace your old loan, you should first work out how much you will save after fees. This way you'll know if you’re really getting much benefit from the cheaper interest rate.

One way to do this is by using our handy loan comparison calculator. This tool makes comparing two loans a lot easier. You just need to indicate the interest rate, loan amount, and term of your current mortgage and the new loan product you’re looking to get.

Even a small change in interest rate can have a big impact on your repayments. To illustrate, imagine your current lender offers a 4.59% interest rate on a $300,000 loan for 30 years. With those figures, your monthly repayments will be $1,536 and you’ll pay back $553,011 in total.

But if you decided to refinance to, with an interest rate of 3.64% with the same loan amount and loan term, your monthly repayments would be $1,307 instead, or $493,448 in total. Refinancing could save you $255 every month, or $59,563 on your overall mortgage amount.

Chasing the lowest interest rate shouldn’t be your only concern. You also need to be wary of the exit fees with your current lender. Plus, you should also know the upfront application fees you need to pay to your new lender so you can better budget your money.

Refinancing can be a wise move if you take your time to do your homework and weigh up the advantages and disadvantages. Bear in mind that deciding when to refinance will depend on your personal and financial situation.

How to refinance my mortgage?

Refinancing here in is easy. Here’s your step by step guide:

  1. Fill out an online application: Start by visiting and fill out our application form. You will then need to book an appointment with one of our lending specialists.

  2. Speak to a specialist: They will ensure that you get the home loan features that are best suited to you. They will also provide you with a login to our app, onTrack.

  3. Upload your documents: With your onTrack login details, you will then need to upload some supporting documents such as pay slips, bank statements and details of your existing loan.  

  4. Property valuation: A property valuation will be done on the property you are borrowing against.

  5. Loan approval: If valuation and credit assessment meets our requirements your loan will then be approved.  

  6. Loan documentation: In this stage, you will receive the mortgage documents and the loan agreement pack. You will need to sign the documents then return them to us. The documents will authorise us to deal directly with your existing lender on your behalf.

  7. Settlement: During this stage, we will send funds directly to your current lender and do the paperwork with them. The loan balance will be reduced to zero and from that date you'll no longer pay them interest.

  8. Access your account online: Once the payment has been made, you will receive your login credentials so you can manage your new loan online.

The refinancing process typically takes about three weeks from completing your online application until to the settlement stage, compared to traditional banks which can take up to six to eight weeks. You can check out our refinancing loan products and see what features you think suit you the best. 

Guide to Refinancing Your Home

Most people have questions as they start on the refinancing process, so we have pulled together some articles to help you.

From tips on how to get through the home loan process for homeowners and refinancers, to advice on loan pre-approvals and home renovations, you can find it here.

​We want to help you at each stage of your journey, whether you are just starting out, looking at properties, or ready to apply today and secure a low rate.

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