First and foremost you want to be clear on why you’re refinancing – what is it about your current home loan that isn’t working for you? Perhaps you’re after a lower rate or more flexibility. You may have to pay some fees to leave your current home loan, so being clear on the benefits your new home finance will bring can help you decide whether the switch is worth it.

Refinancing your home loan can be a life-altering venture with many highs and lows along the way. Either way, we’re here to help simplify the process.

Here are some key points to consider when refinancing your home loan:

• Understand if early termination fees might apply
• Know how much you could potentially save over the life of the mortgage
• Research what other home loans are available
• Do you want to shorten or extend your home loan term
• Are you wanting to consolidate multiple debts
• Know if you’re freeing up equity for a new purchase
• Understand what your new monthly repayments will be
• Know what your settlement costs will be and what government fees will apply
• Decide if your new home finance will be fixed, variable, or a combination of both

When looking at new home loans it’s important to compare more than just the Ijara rate. Look at all the fees and charges associated with the finance, as well as features and add-ons that are important to you, for example, a redraw facility or offset account.

It’s a good idea to have an annual health check on your home finance to review whether the Ijara rate and finance features are still suited to your needs.

Your financial situation may have changed since you took out your current loan, so take the time to work out exactly what you can afford. A lending specialist can talk you through each home finance in detail and assess whether a switch will help you save money over the long term. When refinancing your home loan it’s important to consider all your expenses, including not only the more obvious upfront costs but also the ongoing costs too.

Upfront costs:

• Exit fees – otherwise called discharge fees
• Break fees – otherwise called mortgage deregistration fees
• Start-up/ new home loan application fees
• Lender’s mortgage insurance – insurance that credit providers take out to protect themselves should the loan not be repaid
• Stamp duty – when refinancing you may be liable to pay stamp duty. We’ve got our stamp duty calculator here
• Settlement fees

Ongoing costs:

• New monthly mortgage repayments 
• Direct debits – when switching lenders be mindful to also update any existing direct debits, as failure to make payments could result in last fees

When you’re applying for a refinancing home loan we will assess you on many factors. One factor will be what equity you currently have. The assessment will be broken down into three categories; what you earn, what you owe, and what you own. Your eligibility to qualify for refinancing will also take into account the specific home loan you’re applying for.

Some of the factors we will assess you on during your home buying journey:

What you earn

• Salary – you’ll likely need to supply two of your most recent payslips as proof of employment
  Investments – any earnings from shares, or managed funds, we will likely require proof
• Rental income – if you receive rental income you will likely need to supply statements
• Government income – if you receive government support

What you own

• Savings eg. a term deposit amount
• Substantial personal assets eg. a car

What you owe

Credit cards or loans eg. students debts, leases

Here are some important documents you’ll need as proof of identification:

Primary identification

• Current driver’s licence and/or current passport or birth certificate

Secondary identification

• Council rates notice, credit card, debit card, Medicare card, health care card

Compared to the first time you applied for your home loan, refinancing your home loan is a much easier process. Here’s a simple breakdown of the home finance refinancing process:

1. Get started online – starting your application process couldn’t be easier. You can also visit your local branch or call us to chat with our home finance experts.
2. Finance application – we’ll guide you on all the necessary information and documentation you need to complete your finance application.
3. Finance approval – once your finance has been approved, it’s time to notify your current lender that you will be discharging your home loan.
4. Finance settlement – we will meet with your current lender for the home finance settlement.