We have a tailored home loan solution for everyone.
Buying property is one of the biggest purchases you will ever make, and over time your circumstances may change, meaning your current home loan isn't the best fit for your individual situation.
Refinancing is an option explored by many mortgage holders, whether it is to get access to a better interest rate, restructure the loan based on new circumstances, consolidate other debts, extend or renovate or get enhanced features and benefits that you didn't initially need.
Before the decision to refinance is made, there are a number of things you need to consider to ensure refinancing is in fact the best option for you. Make sure you understand the real costs of refinancing, including fees and charges that may apply to your loan, the features and benefits of the new loan, and any penalties that may apply for exiting your existing loan.
Most importantly, whatever the purpose for refinancing, the onus is on being able to make the repayments. Don't get yourself into a loan that you can't afford. Also, don't forget that in many cases your existing lender may be able to make modifications to your loan to make it best suit your circumstances. It never hurts to ask.
How can you better manage your debt and use refinancing to the best effect? Loan Ave suggests the following tips for those looking to refinance.
Understand why you are refinancing
If you are refinancing to make improvements to your property, you are adding long-term value which will in turn assist to grow your equity. However if you are tapping into the equity in your property to pay for a holiday or a new car, make sure it's the right decision, especially in a lacklustre property market which we are currently facing. In these cases you will be paying interest on the cost of your holiday or car over the life of the loan, with less prospect of building your equity.
Living on credit?
If you're using one debt facility to repay another you need to reconsider your options. While refinancing to consolidate your debts can help alleviate some financial strain, you should keep as much equity in your house as possible, and pay off your home loan as quickly as possible to reduce your interest spend.
Consider the future
There are always unforeseen events that you can't plan for - be sure to have a little bit of financial flexibility up your sleeve, just in case. Are you realistic with what you can and can't afford? Put together a comprehensive household budget and look at all your expenses. Don't just rely on others' opinions of what you should or shouldn't borrow.
Re-visit your variable expenses
Costs such as gym membership, pay TV, internet and mobile phones can make up a considerable amount of household spending. If you are struggling, can these be downgraded temporarily until you can get on top of your debts? You'll be amazed at how much you can save.
Apply to refinance your loan
After deciding which loan is right for your needs, your consultant or broker will help you apply for your loan. You will need to supply us with supporting documentation in regards to the loans you are refinancing, your employment and income.
Your existing lender will also need to be made aware that you will be discharging your loan with them. This will involve obtaining payout figures and submitting a discharge request.
Approval and documentation
Once Loan Avenue have received all necessary documentation to process your application; we will notify you and proceed to issue a letter of offer, providing all lending criteria have been met. This needs to be signed and returned to us as quickly as possible to allow us to arrange the next step.
Arranging your settlement
Once we have received your signed letter of offer, we will organise settlement with your solicitors or conveyancers (if applicable). This is a process where titles are exchanged and the bank registers a mortgage over your property.
Drawdown your loan
Once all of the above steps are complete.... Congratulations and welcome to Loan Avenue!
* Terms conditions & lending criteria applies. Full details of terms & conditions available upon application