There are many reasons to refinance not only to get a better deal – you may want to upsize or downsize your home with the view to renting out your original home – if so this does require special consideration and professional tax advice.

Unfortunately many lenders have a habit of offering better interest rate discounts to new home loan customers. Therefore to get the best deal you may have to become a new customer with a different lender. However that doesn’t mean that you should refinance every time you find a better deal – after all there are costs in time and money, each application shows on your credit report and with some lenders currently making a grab for market share there is no guarantee that the lender you switch to today will still be competitive next month – but with our years of experience we know their track records.

There are many factors that can influence your decision and there may be barriers. So the first thing we, as your mortgage broker will do is to assess whether you are really in a position to make a cost effective move to another lender. In fact under new national consumer protection laws we now have a legal obligation to do so.

Refinancing gives you an opportunity to reassess the features of your home loan that you may or may not need and may be paying for. A home loan refinance also allows you to consider aspects such as cross collateralisation which possibly due to tight settlement deadlines in the original finance may have been forced upon you.

Some popular variable rate offerings

So if you are simply feeling that you could be doing better with your current home loan, then you probably can be and you should contact us, as your mortgage broker to give your home loan mortgage a free check-up. Don’t be afraid that we will try and push you into a refinance for a quick commission because that’s not how we work. Sure we want your business but we also want your repeat business and your recommendation to your friends and family. If it’s not in your interest to refinance your home loan, we will tell you straight up. Many of our current clients came back to us because they received honest advice in the first place.

A full refinance is quite straight forward but don’t expect it to be done overnight. It can be quite prompt where lenders have a mutual ‘fast-refinance’ option and your requirements are basic. However, if that isn’t the case then you can expect your old lender to drag their feet on the loan discharge, taking maybe two weeks or more just to arrange this. There may also be restrictions on the refinance if the new loan amount is greater than the loan amount being refinanced – referred to as ‘cash-out’ so you may need have an explanation ready if this is the case.

Contact us today on 1300 586 585 or email us info@orangefinancial.com.au.
We’re confident you’ll appreciate our service as your mortgage broker.