Refinancing options.

What is refinancing and the different reasons why people refinance?.

Refinancing a loan is the process of moving your existing loan from your current bank to another bank. There can be many reasons why people would refinance their loans, this can include:


Reducing interest rates to save on interest


Access equity in their property


Convert a variable home loan to a fixed home loan


Increasing their loan term to 30 years to reduce repayments


Consolidation of debts

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Just pick up the phone and contact us and we can walk you through the process and get you started!

A bit more detail.

Below are some of the topics that may help you understand the buying and home loan process better, you can never have enough information.

Property Valuation and how is equity calculated

A valuation is the process of determining the value or worth of a property. Once the valuation has taken place by the chosen bank, a valuation report is provided to advise of the property value.

Equity is the difference between the current value of your property and how much you owe. Equity can be accessed for a range of reasons and needs to be approved by the bank.

To calculate equity, you can use the formula below:

Current property value x 80% = $x minus your current home loan balance = $x equity available.

Property value $600,000 x 80% = $480,000 minus current home loan balance of $320,000 = $160,000 equity available.

*please note that 80% has been used to ensure that Lender Mortgage Insurance does not apply. However, this can be increased to above 80% with LMI applicable

Interest rates and product comparisons

When refinancing, we will compare all of the different products and rates that are currently being offered on the market and take out all of the hard work for you. They will take into consideration what your current rates are and make sure that they find you a better offer.

What is cash out and what can I do with it?

Cash out is when you access the equity in your property for a range of different purposes, these purposes can include but are not limited to…

Home renovations: for non structural renovations and home improvements such as redoing your bathroom, replacing your floors and blinds or even doing some landscaping

Buying a car: no need to get a car loan when you can access your equity and pay a lower interest rate

Consolidating debts: If you have other debts outside of your home loan such as credit cards, car loans, personal loans, you can access the equity to pay off these lending facilities and consolidate them into your home loan. The interest rate of your home loan should be lower than that of these credit facilities and you would also save on any account fees that these facilities charge

Deposit for your next property: If you are thinking of buying another property, you can use the equity to pay the deposits and costs (such as stamp duty etc.)

Cashback offers

Many banks also offer refinance cashback from $2000 to cover any of the costs that may be charged from your current banking for discharging your loan. If the discharge cost from your current bank totals $500, the remaining $3500 from the cashback will go straight into your pocket.