*iSelect is the trading name of iSelect Mortgages Pty Ltd (ABN 86 148 217 181). iSelect Mortgages Pty Ltd is a credit representative (Credit Representative 400540) of Auscred Services Pty Ltd (Australian Credit Licence 442372). iSelect provides a referral to Lendi Pty Ltd, a Credit Representative of Lendi Group Finance Pty Ltd (Australian Credit License 442372). iSelect Mortgages Pty Ltd receives a commission from the Licensee for each new customer account created and for each home loan submitted through this service.
We partnered with Lendi* to help you compare home loans from over 25 lenders and over 2,500 home loan products.
In this article, we’ll look at how you might prepare to refinance, as well as break down the process step-by-step.
Refinancing doesn’t need to be complicated. The process is straightforward enough: it mainly involves replacing an existing home loan with a new one.
It usually takes a few weeks to get everything approved, though in some cases, it can be as quick as one week.
And while this swift resolution isn’t guaranteed, you can still take some steps to help the process go smoothly.
This one might seem a bit obvious, but it’s still a good idea to ask yourself whether refinancing is a good fit for you.
For instance, some reasons homeowners refinance can be:
However, this all comes down to what you want out of your new home loan.
This could be lower costs or additional features, such as an offset account or redraw facility. Maybe you just want a home loan that better suits your current finances and lifestyle. But no matter your preference, it’s important to be clear on what you need before refinancing.
You’ll also need to research your options when refinancing.
This is because every home loan is different. Some lenders might advertise lower rates, while others could offer fewer fees or extra loan features.
So how do you compare these different loans?
Well, one way is to let us help with the heavy lifting. At iSelect, we’ve partnered with Lendi so that you can compare loans from a range of home loan providers. And you can click here to get started.
Even if you find a more competitive home loan, speaking to your existing provider could still be worthwhile.
You might be able to negotiate a better rate on your home loan, especially if your provider is aware that you’re considering a switch.
But what if they’re not able to give you what you need?
At that point, you might wish to refinance with a new lender. Just be sure to weigh the costs of switching against the benefits, and review the details of your new loan.
As part of the application process, your lender will usually ask for some documents. These can include papers such as:
|Proof of identity||
|Proof of income||
|Your current home loan statement||
|Proof of assets||
|Proof of loan and debts||
It also doesn’t hurt to get these ready before you apply. By doing so, you could cut down on some significant delays throughout the process.
There are several ways you can apply with a new lender.
For instance, you might do so online, apply through a broker or go into the lender’s branch or office.
But there’s also the option of applying through iSelect in partnership with Lendi, which looks something like this:
As you can see, this can help make the process a little easier. And this gives you time to prepare for the next step.
As part of the application process, the lender might enlist a valuer.
This qualified professional will then look over your property to determine its worth.
Often they might do so by inspecting your house in-person. Or they might use property or market data to make an estimate.
This could affect the “equity” on your house – the value of your property vs what you owe on the home loan – for better or worse. Of course, this depends on if it has increased or decreased from the last valuation:
In either case, you’ll be able to think over any changes to equity before you agree to the new loan.
If there are no further requirements, then your application to refinance will likely be approved. At that stage, there will just be a few final boxes to tick:
With all this done, you’ll then be able to move on to the final part of the process.
Congratulations! Your new home loan will now be used to pay the old one. From here, your new lender will let you know when the refinance has taken effect and when your new repayments start.
If you’re looking to refinance your home loan, we can help with that as well.
At iSelect we’ve partnered with Lendi to make it easier to find a great deal on your home loan*. Click here to get started comparing from a range of lenders online, or give Lendi a call on 1300 186 260.
Last Updated: 07/07/2022