Home Loan Refinance

You’ve been watching home loan interests rates for a while now, and you think it might be time to consider a home loan refinance. This is a smart move, if you’re in a position to refinance that is.

By refinancing, you’ll be switching your home loan to another one. You’re essentially paying off one loan and starting a new one with a new lender (or maybe it’s with your current lender)…


Why You Might Consider a Home Loan Refinance


Generally, most people are looking to refinance their existing home loan because they want to reduce the costs of their current mortgage, or something has changed in their lifestyle and they need a home loan that better reflects those changes.

There are many reasons why you might consider refinancing your home loan, and these could include:

  1. You’re looking for a better interest rate for cheaper repyaments. You should always chat to your ACF Mortgage Broker first, especially if your current lender is unlikely to come to the party, to shop around and see what options are available to you. Don’t forget to make sure you’re fully aware of discharge or exit fees associated with switching your home loan, as these can sometimes make the move not worth it.
  2. You’re looking to invest in more property. Refinancing allows you to access the equity you have in your current home to then use it to purchase another property. If you choose to access your equity, just remember that it could take longer to pay off your mortgage.
  3. You’re looking to renovate your home. Again, you’d be accessing the equity you’ve built up in your home to renovate it. This is a great idea and should lead to an increase in property value, something your current lender will love.
  4. You’re looking for different home loan features. Perhaps you’re now in a position to make additional repayments to reduce the interest you’re paying on the principal amount, or you’d like an offset account or a way to redraw some of the extra repayments you’ve made. A home loan refinance can offer this to you, if you find the right lender.



Compare Refinance Home Loans


Refinancing for Life Stages


If you’re home loan hasn’t been reviewed in the past five years, now is a good time to step back and take stock of where you’re at.

Home loans are not a “one-size-fits-all” type of product, so it makes sense that over the life of owning your own home, you’ll likely need to adjust your mortgage to suit your specific needs, which could result in you switching your home loan.

Below is a list of different life stages and some of the loan features that might be applicable to that stage:

Feature First Home Buyer Young Professional/Family Middle Aged Professional Preparing for Retirement 55 and over or Retired
Low Rates/Fees x x
Make Extra Repayments x
Basic Home Loans x
Line of Credit x x
Redraw Facility x x x
Variable or Fixed Rates x
Offset Facilities x
Portability x
Access Equity x x


Understanding the Home Loan Refinance Process


Step 1: The process starts with a review of your current home loan. You should arrange a time to chat with your ACF Mortgage Broker to do this.

Step 2: After this discussion, you may realise that you’re not getting the best deal that you could.

Step 3: Check the exit fees out of your existing home loan and then find out what the potential upfront fees will be on a new home loan.

Step 4: Now it’s time to compare home loans and find the new one that meets your needs. Use our home loan comparison tool to assist you in this part of the process.

Step 5: Once you’ve chosen your new home loan product, it’s time to apply and get yourself set up with your new mortgage. Once you’re approval has gone through, you’ll need to exit your old loan, but your new lender should be able to handle this part of the process for you.

Before you take the leap into refinancing your home loan, ask yourself these few questions:

  1. Have I spoken with my current lender and properly reviewed my current home loan?
  2. Do I really need to access the equity in my home to renovate or can I use savings instead?
  3. Do the exit costs out of my existing home loan outweigh the benefits of moving to a new home loan?

A home loan refinance can be stressful and confusing, particularly if you’re not sure where your current mortgage is at or what your interest rate is. By understanding when a home loan refinance is the right move for you, you can now make the best choice based on your specific needs.

Chat to the team at Australian Credit and Finance today so that you can understand what your current home loan is providing you and whether a home loan refinance is the best step for you.

Talk to our friendly team of Australian Credit and Finance mortgage experts who can help you navigate your way through the process of buying a home, investing in property or refinancing your home loan. Call us today on 1300 735 557 to discuss your home loan options.