How do you refinance a home loan?

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, you can download our handy guide to refinancing.

When should you refinance your home loan?

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.enders 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 here.

What is equity and how can you use it to refinance?

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. For more help on understanding your equity, view this article.

What documents do you need to refinance?

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 you need to refinance your home loan here.

Income Tax

Your income

Employment income (after salary sacrifice, before tax)

Annually

Other taxable income

Monthly

Financial year

2020-2021

Results

Summary
Your taxable income	$92,000
Income tax payable	$21,537
Your income after tax	$70,463

Your marginal tax rate	37%
This means for your annual income of $92,000 you pay
No tax on income between $0 and $18,200	$0
19c for every dollar between $18,201 and $37,000	$3,572
32.5c for every dollar between $37,001 and $90,000	$17,225
37c for every dollar between $90,001 and $180,000	$740
Income tax payable	$21,537

Calculator Assumptions

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Smart Booster Home Loan

The Smart Booster Home Loan is our low rate home loan which allows you to boost your savings, build your equity and own your own home, sooner.

2.10^%

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2.46^%

comparison rate p.a.*

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Bundle your home loan and investment. Save thousands when you bundle your investment loan and home loan with loans.com.au, with rates starting at 2.24%⁺ for both.

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2.96^%

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