While home loans are a long-term commitment, it may be necessary to refinance your mortgage in some situations. Refinancing allows you to take out a new mortgage to pay off your existing mortgage, which can be a smart financial move in some cases.
First of all, speak to a professional mortgage broker to determine whether refinancing is right for you. Once you’ve done this, you can begin the process.
It all starts with your initial application, with your broker evaluating your circumstances to help you submit a more robust application. Be prepared to have your proof of income, ID and a list of your assets and liabilities on hand.
Next comes a valuation of your home to determine how much you can borrow. If you’re going through a bank you’ll likely need to have your property inspected by a licensed valuer. Get the best results by prepping your property ahead of time – trim the shrubbery, declutter the house and tackle all those pesky repair jobs!
Once your lender is happy with everything, you’ll have full approval of your loan, with your lender helping you arrange the settlement of the existing loan and the establishment of the new one.
However, refinancing isn’t for everyone. Before diving right into it, always speak to your mortgage broker on the most suitable strategy for you based on your needs and circumstances. Read more about our homeowner’s loan here.