Learn how you can refinance your Home Loan with 8 simple steps.
We know that Australian homebuyers feel mortgage repayments have become a painful never-ending process. This sentiment can result from a variety of reasons, the most prominent of which lies in high interest rates beyond the financial reach of the average borrower.
Besides, even if you did have the time, would you really want to be bothered going through that whole process over again? Probably not!
Below, we explain the simplicity and ease of the process in 8 simple steps:
- FIND OUT YOUR COSTS: Before you start the process of refinancing it’s important to explore the costs with your current lender. Usually this can be achieved by giving them a call, and speaking to somebody in their loans department, this will give you accurate position on where you stand, and give you a clearer picture on wether or it’s worth making the switch.
- FINDING A BANK: You can use www.switchmyloan.com.au to compare banks and credit unions to see what home loan is right for you, then make an enquiry directly with the bank of your choice.
- APPLICATION: Once you’ve found the right bank, you then move the to the application stage. Your banker will ask to you provide documents such as your payments, loan statements, and identification documents. This generally takes anywhere between 45mins-1 hour, and a good time to discuss with your banker about the relevant fees, features from the new lender if they’re different from your existing one.
- VALUATION: Your property is then valued, which may take from 3 to 5 working days. Depending the bank, or the location of your property, some valuers only do what’s known as kerb-side valuation – where the valuer will only drive past to make his/her assessment. Other valuations may require the valuer to go inside the property for an inspection. Most valuers start early and take up to 10 minutes for the valuation at your home, and generally do it in the morning so don’t worry about having to come home to let him in, make sure you request this from your banker.
- APPROVAL: Once your income has been verified, you receive unconditional approval.
- DOCUMENTATION: You then meet with your banker again, sign your documents and proceed to the next step.
- DISCHARGE: The discharge from your previous bank will generally take no more than a fortnight after the documents have been signed. Be sure to have your discharge forms submitted from your existing lender so that they know you are refinancing your home loan.
- SETTLEMENT: This is the final step when the new loan settles. It is a good time to review your internet banking options making sure that you have changed around all your direct debits if you have changed your transaction account.
The unlisted step 9 would be to save and enjoy the benefits of switching your home loan with SwitchMyLoan.com.au!
Call 1300 307 155 and start saving today!
Latest posts by Matt Ikin (see all)
- Variable vs Fixed Home Loans – Which one is right for me? - December 5, 2014
- Mortgage Tips for Borrowers - November 20, 2014
- 5 Hot Tips for Getting the Most from Your Home Open - October 8, 2014