Your 9 step guide to refinancing

By October 19, 2018Blog
Simple Refinance

Follow these simple steps to switch your home loan lender


Your home loan is probably your biggest household expense – and with interest rates at an all-time low, there’s never been a better time to switch and save. Refinancing your home loan simply means transferring it from one lender to another.

Sounds easy enough – but there are a few decisions to make along the way. So to make the process as hassle-free as possible, follow our simple guide to refinancing.

Step 1

Find out how much you could save by refinancing

Step 2

Speak to Geelong Mortgage Advisers to find the best deal for you

  • your lending specialist will make sure it has the features you need – an offset account, a redraw facility, or the ability to make extra repayments
  • consider any other benefits – like better customer service, great banking apps, credit card rewards or built-in budgeting tools.

Step 3

Check the numbers stack up

  • make sure you know your current balance, interest rate, remaining term and payment frequency
  • Geelong Mortgage Adviser will calculate how long it will take you to recoup your switching costs.

” Cutting 1% off your rate on $500K home loan, could save you around $300 per month”

Step 4

Apply

  • Your lending specialists will build your application in readiness for submission
  • you’ll need to tell us your income, employment details, monthly expenses and any debts you hold (including balances, limits and monthly repayments)

Step 5

 Get your documentation ready

  • We’ll guide you thought the information required, which will include;
  • last two payslips
  • PAYG summaries for the last year
  • last three months bank statements
  • any loan statements – including credit cards, car loans or leases, personal loans)
  • home loan statements for last six months
  • if self-employed: last two years of tax returns, full financials for companies or trusts, tax returns and notice of assessments
  • if it’s an investment property: rental income and property management statements
  • if applicable: child support documents and HECS statements.

Step 6

Sign your home loan application 

  • Complete the paperwork

Step 7

Property valuation

The valuation may be completed electronically, or via a valuer depending on your situation

Step 8

Sign contracts

  • Your lending adviser will explain the loan contract and next steps
  • discharge your current loan
  • you don’t need to organise your own conveyancing.

Step 9

Settlement day

  • that’s it! Once the process is finalised with your current lender, you can start seeing the savings stack up – or keep up the same repayments and pay off your loan sooner.


How long does it take to refinance?

Every situation is different, but you should expect it to take up to a month to go through all these steps. It may also take a few hours of your time to complete the paperwork, read contracts and organise signatures. But if it gets you closer to your savings goals, that’s a good return on time invested.

 

Ready to start saving more on your home loan?  Call Geelong Mortgage Advisers today for an obligation free chat. 0467 198 549