Your 5 step checklist to refinancing

With interest rates at all time lows, it’s time to review your mortgage!

Ensure you are paying the lowest possible rate on your mortgage with less stress and more money! Our Lending Specialists can help save you thousands by following these 5 simple steps set out below.

Refinancing Checklist

1. Gather information to find the lowest rate

The RBA announces the cash rate on the first Tuesday of every month so interest rates are forever changing. You will require the following information to compare rates:

  1. Confirm your current interest rate, loan balance, loan purpose (home or investment) and loan type (variable or fixed)
  2. Estimate of gross income or current payslips
  3. 6 months loan statement to confirm good conduct

2. Arrange your free consultation

Our Lending Specialists have access to a panel of over 30 financial institutions. This wide array of options and our experience will ensure we help you obtain a competitive offer. A mere 0.50% rate difference could save you potentially thousands of dollars a year on interest. In addition, we are able to see you at a time and place of your convenience. We are confident that you will find the refinancing process to be beneficial, seamless and worth your time.

3. Negotiate a cash rebate

Some banks can offer a cash rebate for refinancing. This rebate can potentially cover the cost of refinancing and can leave extra funds in your pocket with our help!

4. Consider consolidating debts

Interest rates on mortgages tend to be substantially lower than rates on credit cards and personal loans. Given you have enough equity in your property, a good option may be to consolidate your credit card/personal debt along with your refinance so that you pay a much lower rate on that debt. You may also want to explore your option of having an offset account or redraw account.

5. Finalise application with costs involved

Speaking to our Lending Specialists will not only give you more options but will give you an accurate representation of the costs involved and weigh up against the amount of money you’d save in order to work out whether refinancing is suitable for you. Refinancing to a different bank is not a costless process. Fees and costs associated with the refinance usually involve a discharge fee from your existing lender; government fees for the discharge of the existing mortgage and registration of the new mortgage and any application fees with the new lender. If you have a fixed loan, there will be a break fee involved for ending the fixed contract early. This is why you must seek professional advice to refinance.

Remember, to check interest rates every 2 years. With rapid rate changes happening every month, you must keep on top of rates and ensuring you aren’t paying more on your home loan than you should be.

Unsure if you need to refinance? Fill out our questionnaire below to find out! To discuss further, book an appointment with our Lending Specialists, Jayden Chen or contact us today on (03) 9835 8200 if you would like to discuss any points in this article further or should you wish to review your current loan interest rate/structure.

About the Author
Accru Melbourne , Melbourne
Accru Melbourne delivers positive financial solutions through exceptional client leadership. We’ve managed clients’ financial needs for more than 150 years and have a team of nearly 100 professionals delivering responsive, personalised and proactive financial solutions for both individuals and businesses across business advisory, audit and wealth management services.
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