Refinance Home Loan in Easy Steps - Nfinity Financials

Refinance Home Loan in Easy Steps – Nfinity Financials

By: Nfinity Financials0 comments

When you Refinance your home loan, you’re essentially replacing your old mortgage with a new one. Your new lender will settle your current mortgage while setting up your refinanced home loan. Your new home loan will have a different interest rate, loan term, and principal loan amount. 

You’ve come to the correct place if you’re thinking about refinancing your home loan but are unsure where to begin, We walk you through every step of the process of refinancing your mortgage in this extensive guide. 

Before applying for a home loan refinance 

Before submitting an application for a home loan refinance, take into account the following. 

Are you eligible for home loan refinance? 

First and foremost, you need to make sure you’re eligible for a mortgage loan refinance

Each lender sets its own eligibility criteria for refinancing, but generally, you’ll need to fulfill the following requirements:

  • Be a permanent resident or an Australian citizen.  
  • Having more than 20% equity in your house will help you avoid Lenders Mortgage Insurance.  
  • Have a strong or great credit score and history.  
  • Have a job and proof of income  
  • Be at least 18 years old 

The next step is to obtain the required documentation if you satisfy the eligibility requirements mentioned above. 

Requirements to refinance home loan

When refinancing, you will need to gather the following documents.

Personal details- Since this has an impact on your income and expenses, you must disclose information about your family situation, relationship status, and number of dependents. 

Personal identification- Your identification, such as a driver’s license, passport, birth certificate, or Medicare card, must be provided to lenders. Your contact information, date of birth, and current address must be on the ID you provide. 

Proof of income- Anything that proves your income, such as your most recent pay slips, Group Certificate, Tax Assessment Notice, or an employment letter confirming your salary. 

Proof of employment- Provide the business details of your accountant and/or employer. If you work for yourself, your lender can ask for two years’ worth of personal and business tax records as well as assessments from the Australian Taxation Office to demonstrate your income. 

List of expenses, existing loans, and other liabilities- Your home financing application must include copies of your most recent bank statements, credit card statements, bills, and other current expenses. 

Current assets- This covers  shares, cash and savings, vehicles, and art. You might be able to repay your house loan with the help of these assets. 

These documents are required to confirm that you are able to repay your mortgage on time and that you are qualified for the refinance. Be aware that you might need to present documentation attesting to your assets.  

Step-by-step guide to home loan refinancing 

Alright, let’s break down the process of refinancing your home loan into easy steps:

Step 1: Figure out why you’re refinancing

Refinancing your home loan is a big decision. Before you get started, think about what you want. People usually refinance to get lower interest rates, pay off their mortgage quicker, or combine debts into one. It is really important to know which refinance home loan rates are best for you.

Picking the right refinance deal for your home loan can feel pretty daunting. But don’t worry, it’s all about knowing what you want to achieve with your money. Figuring out why you’re refinancing will make it easier to find the perfect fit and make switching loans easy. 

Step 2: Figure out if it makes financial sense 

Before you decide on refinancing your home loan, know the costs involved. Check if it’s worth it by adding up all the fees. Refinancing comes with different charges like closing fees for your old loan, fees for the new loan, discharge fees, break fees, application fees, security assessment fees, settlement fees, title search fees, and ongoing charges from the lender.

You need to know how much your home is worth now. When you refinance, you usually need some equity in your home to use as a deposit. If you have less than 20% equity, you might have to pay Lenders Mortgage Insurance (LMI).

Step 3: Choose the best mortgage refinance rates

Now that you understand the basics, it’s time to find the right mortgage loan refinance for you. The best way to do this is by comparing different home loans to see which one fits your needs best. Take a good look at things like comparison rates, loan terms, and features to make sure you’re getting the right deal.

Finding the right loan takes time, so don’t rush it. Talk to lenders or lending specialists and ask questions to understand their loan options better. refinancing your home loan is a big decision, so make sure you and your lender are clear on everything before moving forward.

At Nfinity Financials, we have great deals on refinance home loans. Our experts come with lots of features and flexibility. Our experienced home loan specialists are here to guide you every step of the way. Schedule an appointment or chat with us to talk about refinancing your home loan.

Step 4: Apply for your new loan 

Once you’ve picked your new home loan, it’s time to apply. Get all your paperwork and refinance documents ready in advance to avoid any hold-ups. Keep your home loan refinance papers handy to make the process faster and easier.

With Nfinity Financials, you can do the whole application with ease, our experts can guide you in every step and take all the hassle away. 

Step 5: Prepare for a property valuation/security assessment 

When you decide to refinance your home loan, the lender might ask for another property valuation, even if you had one before. To make sure your home looks its best, fix any repairs, and maybe make a few small upgrades. This could help increase its value.

When the latest property valuation is done, it might show that your home’s value has gone up or down. This could change how much equity you have in your home. If the value has increased, you might have more equity available. But if it’s gone down, your equity could decrease. It’s important to keep an eye on this because it can impact your refinancing options.

Step 6: Receive loan approval 

Once your lender has looked over your Documents and assessed the value of your property, they’ll also check your credit. This step is important because they want to make sure you’ll be able to make your repayments. If your home loan refinance is approved, your lender will send you a package with all the paperwork you need to sign. This usually includes things like:

Mortgage contracts: These outline the terms of your loan, like the interest rate and repayment schedule.

Direct debit forms: These allow your lender to automatically deduct your repayments from your bank account.

Terms and conditions booklets: These explain the rules and regulations of your loan.

Discharge forms: If you’re refinancing from another lender, these are used to pay off your old loan.

Mortgage of landforms: These are legal documents that give your lender the right to take your property if you don’t make your payments.

Step 7: Settlement 

Once all the necessary documents have been submitted and reviewed, your new lender will take care of paying off your existing loan. From that point forward, you won’t need to make interest payments to your old lender anymore, even if it takes them a while to officially close out the loan. It’s a relief to have that part settled, knowing you’re now dealing solely with your new lender.

How long does it take to refinance home loan? 

Refinancing your home loan usually takes around four to eight weeks on average. However, this timeline isn’t set in stone and can depend on various factors. For instance, if there are any delays in submitting the necessary paperwork or if issues arise during the property valuation process, the refinance process could stretch out over several months.

Delays can occur for many reasons. Sometimes, gathering all the required documents might take longer than expected. Other times, there could be complications with the property valuation, such as disagreements over the home’s value or discrepancies in the assessment.

Additionally, factors like the efficiency of the lenders involved and the complexity of your financial situation can also impact the timeline. If everything goes smoothly, the process might wrap up sooner than anticipated. However, it’s essential to be prepared for the possibility of delays and to stay patient throughout the process.

Why refinance with Nfinity Financials? 

If you’re looking to save money on your mortgage, consider getting expert advice from our mortgage brokers. They can guide you through the process of replacing your current loan with a new one that has more favorable terms and a lower interest rate. This switch can lead to several benefits, such as shorter loan terms, which means you could pay off your mortgage faster, and reduced monthly repayments, which can free up some of your budget. Taking advantage of lower interest rates now can lead to significant savings over time, making it a financially wise decision.

So, why wait? Book your Consultation Call at 1300 GET LOAN today, Visit our related articles here.

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