Refinance Home Loan
Home Loan Refinancing
If you’re looking for a better home loan deal, or wanting to consolidate your debts, refinancing your home may be a viable option. Tora Finance has the experience and expertise to guide you through this process, ensuring a smooth transition from one lender to another. We have helped countless clients reduce their interest repayments, brokering across more than 50 different lenders to find the optimal deal. If you’re unhappy with your existing loan, talk to one of our team members today.
As a quality mortgage broker in Brisbane, our team can help refinance your home loan without the added stress or hassle. We pride ourselves on straightforward, professional service from our very first meeting to the day you settle. Attempting to refinance a home loan without expert advice can be a perilous task. Tora Finance is dedicated to finding sustainable monthly repayments for all our clients, doing the hard work so you don’t have to. Best of all, our services are free to you, so there is no risk or downside when you partner with us.
Why Should I Consider Home Loan Refinance?
There are many reasons why people choose to refinance their home loan. Below we outline common causes of home refinancing:
Saving Money
Refinancing can help a borrower make the most of a better home loan deal, like a lower interest rate or smaller ongoing fees. Reducing your interest rate may not offer benefits in the short term; however, across the lifetime of the loan, a switch can save you thousands of dollars.
Borrowing More
Refinancing gives the borrower room to increase their current loan. If you are renovating your property or making a new investment, borrowing against your house can provide a stable level of equity compared to other loans. How much equity you have in the property will determine how much extra you can access.
Restructuring
The process of refinancing your home loan could give you the opportunity to restructure your loan repayments. For example, you could shift from a principal-and-interest loan to an interest-only loan, freeing up cash flow to make other investments.
Bundling
If your loans are spread across multiple financial institutions, it may be advantageous to collate them under one lender. This will likely give you access to package deals or other benefits, saving you money in the long term.
Adding Features
Your initial loan may have limited access to financial mechanisms and levers. By switching to a new loan deal, your existing lender or bank may authorise offset accounts or redraw facilities.
Consolidating Debts
Your lender may allow you to consolidate multiple debts or loans within the one home loan package. Although there are risks with this method, a properly consolidated loan portfolio can save you thousands over a long-term period of time.
Talk to Tora Finance today and discover how you can make the most of your home loan.
How Do You Refinance an Existing Home Loan?
Accessing Home Refinance Loans
As we outline above, home loans are refinanced for many different reasons. Most importantly, understanding your financial goals before taking out a new refinance loan is key to long-term prosperity. Tora Finance makes sure you’re aware of the process involved, guiding you step-by-step through the refinancing process so you know what’s to come.
Shopping Around
Initially, we help you look for a new deal. With access to more than 50 different lenders, Tora Finance can provide an extensive breakdown of the repayment options best suited to you. During this phase, we compare loan features, lending criteria and the comparison rate across a number of different financial products.
Verifying Loan Repayments
As we narrow in on a suitable refinancing deal, our team ensures that you can afford to make the switch. Although we’re always guided by your budget and expenses, we take extra care at this stage to triple check everything so your loan application goes through first-time. At this stage, it is always good to sure-up any equity you have in your property to cover any break costs charged by your current lender.
Loan Application
Once you've found a loan that you're eligible for, it's time to apply. Tora Finance will handle the application, approaching the relevant institutions for you and negotiating a deal. With our expert brokers on board, this process should be straightforward. We have navigated this stage countless times, and know exactly how to leverage the perfect deal for you.
Refinance Your Home
Congratulations, you have refinanced your home, and hopefully with a much better deal than the one you had before. The whole process can take up to two months to complete, so plan for the transition in advance. To find out more about how Tora Finance can help you with refinancing your home, get in touch today!
Can I Refinance From A Fixed Rate Home Loan?
When you agree to a fixed-rate loan, your interest repayments are locked in at a certain amount for five to 10 years. This means that, after signing the loan contract, and regardless of any changes in interest rates, your repayment amount stays the same. If you wish to break this contract and refinance your home with a better deal, often there are greater penalties than if you were to have a variable repayment plan (where the interest rates can change). So, it is possible to refinance a fixed-rate loan; however, the fees could be greater than you might expect.
Refinancing Home Loan Fees
When switching to a new lender or changing to a new financial product, there are inevitably going to be fees attached. Below, we list what these fees could be, describing how they are applied. Within the list, not all fees and charges will be relevant to you, as they are completely dependent on the policy of your chosen lender.
Discharge Fee
When you request a loan payout from your current lender, they will always include a discharge fee.
Application Fee
Signing up with a new lender will usually incur a loan application fee.
Valuation Fee
This is a cost charged by new lenders to determine the value of your property. However, as most banks absorb this fee, it is unlikely you will have to factor this in.
Lenders Mortgage Insurance (LMI)
If you are still less than 20% of the way through your mortgage, you will have to pay LMI, just as you did with your previous lender.
Break Fees
Fixed loan rates will incur a break fee if you change within the fixed rate period.
Need Advice From An Expert Mortgage Broker?
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