Refinance Your Home Loan in Melbourne with Brava Finance
Work with a Mortgage Broker to
determine if your current loan still
meets your financial goals and situation.
“Challenges are what make life interesting and overcoming them is what makes life meaningful.”
What is a Refinance?
/ree-fi-nans, ree-fahy-nans/
The process of switching from one mortgage lender to another or changing the terms of an existing mortgage.
You should date your bank and not marry them. Why?
Banking relationships are a lot like romantic relationships. Why should we cling to traditions or practices that no longer serve us or are hopelessly outdated?
There’s a prevailing notion that you need to show unwavering loyalty to a single bank for life.But true loyalty should be a two-way street shouldn’t it?
Unfortunately, the banks often fall short in this regard, especially in the context of mortgages.
Take a minute to think about your answers to the following questions:
Have you taken a moment to compare your ‘loyal customer’ rate with the advertised rates for new customers? The result may shock you!
When was the last time your bank called you to do a rate review or loan restructure to meet your changing financial situation?
Do you think your current bank is truly looking out for your best interests … or their own?
There is a fair chance things have changed since you took out your mortgage loan – your circumstances, your financial goals and mortgage rates in Melbourne! Your mortgage is your largest financial investment so it is important to keep on top of it to ensure it is in tip top shape!
Refinancing can be a strategic move to potentially improve your financial situation and secure a loan more aligned with your best interests.
And my signature process ‘The Brava Finance Way’ principle service method has been designed to support a finely tuned, efficient & effective process from initial discussion to settlement – and beyond.
Submit your details and I’ll be in touch to discuss your refinancing requirements.
For just a 5 minute investment of your time, I can let you know if you are on a competitive rate … or not.
Why Refinance
Potentially more competitive rates
One of the key reasons for refinancing is to benefit from more competitive rates as a new customer.
Changing loan terms
If your financial condition has improved, you may choose to refinance with a shorter loan term, potentially helping you pay your mortgage off faster. Alternatively, expending the loan term might lower your monthly repayments, giving you more financial freedom.
Accessing home equity
You may use refinancing to access your home equity (equity release), which is the difference between the value of your property and the outstanding mortgage debt. This can be handy for funding home upgrades, or purchasing an investment property.
Consolidating your debts
This means borrowing against the equity you have in your property so you can potentially improve your cashflow position by paying out other high interest debt.
Switching loan types
Homeowners with variable rate mortgages might choose to refinance to a fixed rate mortgage to secure a consistent rate and predictable monthly repayments. Or vice versa.
When to Consider Refinancing
Refinancing may be beneficial under the following circumstances:
- Interest Rate Drops: Refinancing can provide an opportunity to shop around for the most competitive mortgage rate potentially reducing your monthly payments and improving your loan health.
- Improved Credit Score: An enhanced credit profile may qualify you for more favourable loan terms, making home loan refinancing a smart financial move.
- Financial Changes: Adjustments to your financial situation may require exploring new mortgage broker services for tailored loan solutions.
The Refinancing Process Explained
Refinancing involves several key steps:
- Assessment: A review of your current mortgage, financial situation and needs & objectives to determine if refinancing benefits outweigh potential costs.
- Research: Perform a loan comparison to find the right home loan options for you.
- Serviceability: Determine your serviceability based on your income, expenses and debt repayment obligations.
- Application: Submit a refinancing application with the chosen lender, providing necessary documentation such as income proof, credit history, and property details.
- Approval and Settlement: Upon approval, the new loan settles the existing mortgage, and any potential increase to this if you’re pursuing debt consolidation or equity release. You then begin repayments under the new terms.
Benefits of working with a mortgage broker VS dealing direct with a bank/lender
- Access to over 50 different banks/lenders
- Finding a product with the best fit for you
- Work under Best Interest Duty - statutory obligation
- Service is at no cost to you
- Personal support & guidance
- Ongoing loan adviser
with
Cara Julian
with
Banks & lenders
Choosing the Right Mortgage Broker in Melbourne
Selecting an experienced mortgage broker is crucial for a successful refinancing experience. A reputable broker can provide access to a wide range of lenders, offer personalised advice, and assist in navigating the refinancing process. When evaluating brokers, consider their qualifications, client testimonials, and willingness to understand your financial goals.
Potential Costs and Considerations
While refinancing can offer savings, it’s essential to be aware of associated costs:
- Exit Fees: Some lenders may charge fees for terminating the existing loan early.
- Application Fees: The new lender might impose fees for processing the refinancing application.
- Valuation and Legal Fees: Costs for property valuation and legal services may apply.
Calculating the break-even point—the time it takes for savings from any interest rate reduction and other benefits to cover these costs—is vital to ensure long-term financial advantages.
Common Mistakes to Avoid
To make a sound refinancing decision, avoid these pitfalls:
- Overlooking Fees: Failing to account for all refinancing costs can negate potential savings.
- Not Shopping Around: Accepting the first offer without comparing other options may result in less favorable terms.
- Extending Loan Term Unnecessarily: Lengthening the loan term can reduce monthly payments but may increase the total interest paid over time.
Thorough research and consultation with financial professionals can help you navigate the refinancing process with more confidence.
Loan Types and Features
Don’t let all the mortgage terminology overwhelm you.
See below for a list of most commonly used mortgage terms:
A loan where the interest charged on the outstanding balance fluctuates based on an underlying benchmark or index that periodically changes.
A loan where the interest rate on the loan remains the same for a set period of time.
A loan that is divided into two or more portions (typically a fixed rate portion and a variable rate portion), each with different interest rates or loan types.
A loan structure where the borrower makes repayments on both the interest and the principal loan amount.
An interest only mortgage is a loan in which the borrower pays only the interest for some or all of the term, with the principal balance unchanged during the interest-only period.
Our Lenders
We have access to over 50 different bank and non-bank lenders, so let us do the leg work for you!
Use our Calculators to:
- Calculate your loan repayment
- Calculate your income
- Calculate your maximum borrowing capacity
- Calculate your refinance savings
- Calculate how long it will take to repay your loan
Frequently Asked Questions
Home loan pre-approval (or conditional approval) means that a lender has agreed, in principle, to lend you money towards the purchase of your home but hasn’t proceeded to full or final approval.
A pre-approved home loan serves as a valuable instrument for prospective homebuyers, as it provides insight into the affordable amount for purchasing a property, may help you improve your negotiating position and to look with more confidence.
Owning a house comes with its own set of financial considerations, one of which is whether or not to refinance your mortgage. Refinancing may appear overwhelming at first, but it may provide many benefits for homeowners trying to better manage their changing financial situation. These benefits include: a more competitive interest rate, changing loan terms, switching loan types, and accessing home equity.
It is important to consider the costs of refinancing when making your decision. Typical costs involve a mortgage discharge fee, new lender set up fee and settlement fees.
Buying a home is a big step in anyone’s life. A mortgage broker can act as a guide, there to support you every step of the way.
There is a lot to understand including different rates, product features, loan terms, etc. This is where a mortgage broker can be a really helpful resource on your team.
Paying off your mortgage early comes with a host of benefits, both financial and emotional.
Here are 5 ways that may help you:
1. Make bi-weekly payments
2. Make lump sum payments
3. Refinance to a shorter-term
4. Make extra repayments
5. Cut unnecessary expenditure
The Problem
You may relate to the following:
Stress from increasing interest rates
Lack of time
Feeling financially vulnerable
Tight cashflow
Overwhelm
Lack of confidence
The Solution
My principle service method has been designed specifically to try and increase time efficiency and reduce overwhelm.
The Payoff
Customers may experience:
A competitive rate
Game plan/ Guide
Feeling financially secure
Improved cashflow position
Feel in control
Confident
The Process
I have developed an efficient service model to enable a streamlined experience for my customers – through a lot of trial and error but have since perfected!
It involves a 5 step game plan where each step of the way is clearly communicated and fully supported with processes and checklists which may make life easier.
Start your journey with me today!
Get in touch with me and find the right lending solution for you