- Posted 17 Nov
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Refinancing your home is a way to get a more competitive interest rate with a different lender and can often lead to a better home loan package.
It’s not without difficulties though, and can take some time to find the right deal. If you need to get a new home loan quickly, a “fast refinance” is something to also consider.
1. Why go for a fast refinance?
Fast Refinancing offers the following benefits:
- No fees. Most mortgage lenders do not charge fees in a fast refinance process.
- Settle quickly. Once paperwork has been received, you can settle in as little as two days.
- Save on interest. Refinancing to a new home loan with lower interest rates will save you money.
- Less paperwork. Your new lender will contact your current lender and organise the loan, doing most of the work for you.
2. What is a fast refinance?
A fast refinance allows borrowers to get a new loan from a new lender, without your existing lender slowing things down. Generally, your current lender will try to hold financing up, as they benefit each day you keep your home loan with them. The more they can delay, the more money they make.
With a fast refinance, they don’t have the chance to hold everything up. The new lender doesn’t ask for the title to the property prior to advancing funds, which can hold things up. They simply deposit the funds into your old loan account, and its closed right then and there.
3. How long will it take?
This depends on the speed at which you supply the paperwork and the level of complexity of the loan. Typically, it takes around three weeks.
This is much shorter than other types of loans that can take up to a month or more. Try and negotiate with the new lender as well. Banks can make exceptions – some urgent loans can be taken up and settled in two weeks.
Ultimately, if time is of the essence, you are going to have to be proactive and advocate for yourself to push your refinance through. Or you could utilise a mortgage broker to help you do this.
4. What will I need to provide?
Each mortgage lender has different requirements, but most lenders will want the following:
- Three months of bank statements
- Your existing loan amount (statement)
- Completed loan documents with updated loan figure
5. Other tips
Have your documents ready ahead of time. If time is of the essence for you, you want to make sure you have all the necessary paperwork in order before you approach each lender involved.
Also, be clear with what you want. You are switching lenders, which can be a difficult process. However, The fast refinance route is a simple solution to high interest rates and undesirable loan packages. Yes, you are switching your mortgage provider, but it may be more beneficial and economical for you in the long run.
If you need help with refinancing your home or are looking to buy another property, let us take away all the hassle – talk to our team of experts today.