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 ACN 611 161 856 (Lendi) who provides credit assistance. Lendi is a credit representative of Auscred Services Pty Ltd (ACN 164 638 171) (Licensee). 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 35 lenders and over 2,500 home loan products.
There are many benefits to consider when refinancing your home loan. Here are some of the main ones:
Spend some time working out why you want to refinance and the benefits you hope to achieve. It can be easy to be tempted by a low interest rate, but always consider what costs and other restrictions you might be taking on by switching, such as a locked-in fixed rate loan with high annual fees.
There are generally six main steps to refinancing your home loan:
Now let’s look at each of those steps in detail.
Before you decide to switch, be sure you understand your current circumstances. Think about the things you like about your current home loan, and things you don’t.
So, you’ve got full knowledge of your current home loan and a good idea about what you’re looking for in a new one. It’s time to start looking around and comparing loans.
You can do this yourself online or enlist the help of a mortgage broker. iSelect has partnered with Lendi, an online broker platform with the experience and knowledge to help you find a home loan suitable for you*. What’s more, they help with all the legwork for you.
A Lendi broker will require details of your income, expenses and financial commitments to help them find a loan tailored to your needs.
They may also be able to access a better deal for you from your current mortgage provider, so it may well be worth speaking to Lendi even if you’re not planning to change lenders.
As mentioned earlier, it’s important to research any fees you may need to pay to exit your current loan. Your new loan may have some upfront costs that you’ll have to pay too.
A mortgage broker, like Lendi, can help you work out what costs you’ll be up for when you refinance, and that’s important, because sometimes the costs can outweigh the benefits.
Whether you’re refinancing with the same lender or moving to a new one, fees will vary. If you’re staying with the same lender, ask if they can waive some of the fees. Don’t underestimate your ability to leverage your loyalty!
You can use our refinancing calculator to help you crunch the numbers.
Once you’ve decided on your new loan, it’s time to apply for it.
You can often do this over the phone, in a branch, or, if you have a broker like Lendi, they will submit the application on your behalf.
If you’re refinancing with a new lender, you’ll have to provide personal and financial information just like you did when you applied for your original loan.
The lender may require:
Before your new home loan is fully approved, your new lender will need to value the property and see how much it’s worth. This pre-approval stage generally takes about a week.
If you’re changing lenders, your new lender will contact your current lender so they can transfer your information. This is also the time when you’ll have to settle any fees which apply to your old loan such as break or discharge fees.
Once your application is formally approved, your new lender will likely send you a mortgage contract pack containing relevant paperwork, such as:
You may also receive less formal documents, like a ‘welcome pack’ confirming all your loan and repayment details.
At this time, a broker can help you make sure you fully understand all the paperwork and documentation that you need to submit. Once you’ve signed the contract, and eventually your old loan is paid off by your new loan, that’s settlement!
Hopefully you’ve got yourself a great deal and will enjoy many benefits from your refinanced home loan.
Remember, one size doesn’t fit all. Make sure you consult a mortgage broker to help you find the solution that works for your circumstances.
Our team at iSelect have partnered with Lendi*, to help you compare a range of different providers. Use our online tool to compare home loans, or give Lendi a call on 1300 186 260 (08:30-18:30).
Last updated: 28/10/2021