Looking to refinance?
When refinancing, it’s important to consider a few important factors that may affect the options available and/or the potential savings that might be achievable for your loan.
In the interest of transparency, we’ve listed them for you below.
Refinance table FAQ’s
How are the refinance costs calculated? – This is an estimate based on your current lenders discharge fee, government charges, application fee, and other potential costs. It is an estimate and some lenders may be slightly higher or lower.
How are the savings calculated? – The current bank savings are based on the interest on your current loan balance and the new rate, minus the interest on the old rate. The maximum savings are based on the interest on your current loan balance and the new lender rates, minus the interest on your current rate, and includes any refinance costs and rebates where applicable.
How long does a refinance take? – This depends on the lender, but is usually between 4 – 6 weeks. We’ll make sure your discounted rate with your current lender (if received) is applied as soon as possible though.
Why are the savings over 1, 2, 3, 4 or 5 years? – This shows you how long you may need to be with a lender before you’re better/worse off. This may help if you’re choosing a product with an expiry date (e.g. fixed), or looking for short term savings.
What’s the difference between a basic and package variable? – Basic products are usually cheaper with no ongoing fees, but without the features like an offset account or fee free credit card. Packages usually have these features and more but incur an annual fee.
If I have multiple loans refinancing to the same lender, do I receive multiple rebates? – The lenders that offer refinance rebates only offer one per customer, so if you have multiple loans and/or multiple properties all going to the same lender, then it’s just one rebate. If you have multiple properties and the loans against them are being refinanced to multiple lenders, then you may qualify for a rebate with each lender as long as you meet the minimum loan size (usually around $500k)
Disclaimer
New monthly repayments are based on the same loan term as your current loan. Sometimes loans may be refinanced over 30 years which will reduce your repayments, but can incur higher interest costs.
Please note that in most cases, the lenders and rates we’ve selected exclude products that cater for SMSF, Company or Trust borrowers unless advised otherwise.
If you were to refinance, there would be some qualifying criteria for you to meet before we can confirm if these rates are available to you.
If you are interested in fixing your loan, or part of it, we recommend reading through our attached ‘Fixed Rate Pros & Cons’ PDF to help you make an informed decision.
If you prefer to keep the loan as it is, your new variable rate will be applied in 5 – 7 business days and you should see this in your next statement. Please let us know if this is not the case.
This comparison assumes your loan is within the Loan to Value ratio required to qualify. If your loan is above 80% of the property value, you may be required to pay mortgage insurance to refinance.
Lenders are starting to withdraw their offers for cash back without notice so if you are interested in refinancing, please let us know urgently.
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