Refinance your home loan

Refinance your home loan

Refinance today and save thousands

Refinancing your home or investment loan does not need to be complex. Approved Property Finance has helped thousands of clients move their home loan to a new lender in order save lots of money on interest. Our process is streamlined, our service is professional and our testimonials on google continue to confirm this.

Below we have provided answers to the most commonly asked questions. Please reach out to us using the contact form and let us help you save thousands.

How much does it cost to refinance?

On average refinancing will cost you $800 per property being refinanced. However many lenders now offer a cashback incentive of up to $4,000 so most people actually make money by refinancing. The new lender usually pays this cashback 30 to 60 days after settlement.

When refinancing you will need to pay the following charges:

Type of
charge

Description

Cost

Existing
Lender

Existing lender will charge you a discharge fee. This fee is usually $350 per property but each lender differs as some lenders may charge the fee per loan (not common). Best way of confirming this fee is to ask your current lender. If you have a fixed rate loan there may be a break fee which only your current lender to calculate. Best way of confirming this fee is to ask your current lender. There is no exit fee for variable loans.
$350 per property (assume no break fee)

Office of State Revenue

Office of State Revenue will charge you a fee to remove the current mortgage on the property and add the new mortgage for the new lender. This fee is currently $165.40 for the removal and $165.40 for registering.
$330.80 per property

New Lender

The new lender may charge an upfront fee to cover the valuations, legals and settlements. Most major banks do not charge upfront fees but best to confirm with your broker or new lender
$100 (assumed)

Cashback

Many lenders are offering a one-off cashback incentive to refinance your home or investment loan. These cashbacks are up to $4,000 depending on the lender. While there are criteria to qualify for the cash back once it has been paid (usually 30 days after settlement) you have no obligation to stay with the lender

$2,000 cashback

TOTAL

$1,219.20 BENEFIT

How much does it cost to refinance?

This depends on what interest rate you are currently paying. You need to differentiate between interest savings and reduced loan repayments. By refinancing you can usually obtain a lower interest rate (generally 0.5% lower) so this results in you saving interest and reducing your periodic repayments.

However when refinancing you also have the option of changing the term of your loan. Loans usually have a loan term of 30 years and when you decide to refinance you will usually have had the loan for a few years. Let’s assume you have had the loan for four years. As such you have 26 years remaining.

Now if you refinance and keep this loan term and get a lower interest rate you will save interest and reduce your repayments. However if you change the loan term to 30 years and get a lower interest rate you will reduce your annual interest charge and lower your periodic repayment even more but you will be paying interest for four more years so in the long term it could be costing you more.

We always recommend to our clients to keep the same remaining loan term as we do not want them paying more interest in the long term.

How long does it take to refinance my home loan?

It varies from lender to lender but the average time is 4 to 6 weeks. Some lenders are known to take ages to process loans while others are known to be much quicker. You also need your current lender to discharge your current mortgage and they have little incentive to do this quickly. As such some lenders can take 3 weeks just to release your current loan and mortgage.

 

We are aware of these delays and we make sure that we submit the discharge form upfront to avoid your current lender delaying the process.

 

Some lenders offer a service called fast refinance. If this option is selected the new lender will pay out your current lender without arranging settlement. Once the loan is paid out the new lender will then request the mortgage from the current lender. The new lender takes out insurance in case they have a problem getting the mortgage as required. 

 

The benefit of this service is twofold:

  1. It is much faster as the new lender does not need to wait for the current lender to be ready to settle
  2. By paying out the loan without telling the current lender there is no option for the current lender to try retain the client by offering the same deal

The downside of this service is:

  1. The new lender requires the new loan to be larger than the current loan as the payout needs to cover any interest owing and any fees
  2. There is usually a surplus of funds which gets paid to you a few weeks after settlement so you need to monitor this to make sure it gets paid
  3. If the new lender has a slow application process the refinance will stay take long irrespective of using fast refinance or not

How will refinancing impact my repayments?

When refinancing there are a number of variables to consider that can impact your repayments. These are:

  • Loan amount – is the loan amount staying the same or changing
  • Interest rate – is the interest rate staying the same or changing
  • Loan term – is the loan term staying the same or changing
  • Repayment frequency – is the repayment frequency staying the same or changing

If the only variable that changes is the interest rate and the new interest rate is lower than the current interest rate your periodic repayments will reduce. If other variables also change then it is difficult to predict but your broker and/or new lender can advise you of the new repayment amount for different scenarios.

Does refinancing impact my credit file?

When you apply for any finance facility the finance provider will do a credit check to review your credit file. As such your credit file will show an enquiry by the new lender but this has little impact on your credit score.

What if I don’t like the new lender?

Refer to the question ‘How much does it cost to refinance?’.

If you have a variable loan the only lender fee payable is a discharge fee (usually $350). If you have a fixed rate loan there can be a break fee but you need to contact your current lender to find out if there is a break fee payable.

Is it easy to refinance?

The process of refinancing is basically the same as the process to purchase a property. The applicant needs to pass the servicing test and comply with the loan to value ratios of the lender. In the current environment (ie. interest rates increasing) refinancing is becoming more difficult as property values are decreasing and loan assessment rates are increasing (ie. people can borrow less). This is one of the key reasons a person should use an experienced mortgage broker as they can help the applicant navigate the various challenges.

What our clients say on Google

"If you're looking for someone who will go above and beyond to help you get a loan, James is your guy. He was so supportive through my whole loan process that I literally couldn't have done it without him. Extremely knowledgeable and helpful at every stage."
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Robert McFarlane
"I worked with James to get my loan sorted. One thing I loved about his service was I never had to ask him for an update. He kept me informed every step of the way. We had some hurdles to get over because of my difficult situation but he was professional, found the right option and got my loan approved really easily. I'd definitely use James again. Very impressed! Thanks again."
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Michael S
"James is a dedicated and caring individual who went above and beyond to organise our loan. He is incredibly knowledgable with a high attention to detail, he's also a fantastic communicator who constantly checked in with us on the journey. If I could give him 10 out of 5 stars I would!"
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Gabriella Sanderson
"James went above and beyond to help secure my first home loan. He made the process so easy! I couldn't be happier!"
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Jack Good
"Working with James on the entire process of arranging a loan, advice on house hunting and assisting me with guidance and advice was so welcomed and appreciated. A process that I believe is meant to be very stressful was in fact, enjoyable and no stress at all. Thank you."
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Lisa Spear
"Thank you James for all your help and hard work with our mortgage. Your service has been outstanding and I am thankful for your continued help allow the way. You have made the whole process easy and I would 100% recommend your services. Thank you"
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Jason Edwards
"As a buyers agent I have dealt with lots of mortgage brokers. James is someone I deal with regularly and it’s always a pleasurable and professional experience. His communication is regular and thorough which plays a big part in making the property buying journey smooth and successful. And he is always available for any questions that may arise. I never hesitate to recommend him to my clients."
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Nadine Morris
"Big shoutout to James (again). What a great service, great input on the property, from appraisals to rental potential and detail on the historical suburb growth (within minutes of telling him the new address). Not only did he turn around the loan approval quickly for us he also offered great input for the decision to purchase."
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Kathleen Bartlett
"James made us feel at ease from start to finish. We had been turned away from another broker but James was able to help us with our mortgage, we admired his communication and positivity throughout the process."
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Grace Andrews
"James helped us through every step of the process. James worked tirelessly to help secure a place on the First Home Owners Loan Scheme. We always felt like James had the time for us and answered all our questions. As first home buyers it was amazing having James in our corner fighting for us. We are so thankful! We would highly recommend James to anyone looking for a mortgage broker."
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Cherith Withington
"Approved Property Finance set me up for an investment property. They were very professional right throughout the whole process. I can not recommend them enough."
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Adrian Levi
"James is a great guy and easy to work with. He keeps a solid eye on which banks and lenders are offering the best rates and is able to quickly advise the best course of action. If you're wondering whether or not you're on a competitive home loan deal, I recommend you give James a call."
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Will Swayne

Repayment types

Your Approved Property Finance broker will meet with you, discuss your options and assist you to select the most appropriate loan. Thereafter your broker will complete the application forms and submit the application to the lender.

Once the application has been lodged the lender may request additional information. Thereafter they will either reject or approve your loan. A conditional approval is subject to a property valuation and any other conditions of the lender. Usually takes 5 days.

Unconditional or formal approval is provided once the property has been valued and all other conditions have been met. This process usually takes 3 days after all the conditions have been met.

Under normal circumstances, it will usually take 5 days until the lender sends a copy of the mortgage documents to either yourself or your conveyancer. Once you receive these documents you will need to sign them and return them to your lender within 5 days.

 
 
 

Once your loan documents have been returned to the lender the lender will certify your file and will then book in settlement. At settlement, you will officially be granted the amount of the loan.

 
 

Need help getting approved for the right home loan?

Call 0490 188 219

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