With interest rates rising in recent months, many Australians are facing higher mortgage repayments – prompting more homeowners to consider refinancing to reduce costs or improve their loan structure.

What can refinancing achieve?

• Secure a more competitive interest rate 
• Potentially lower your mortgage repayments 
• Adjust your loan structure (e.g. switch from variable to fixed) 
• Access available equity in your property (e.g. for renovations) 
• Take advantage of interest-saving features, such as offset accounts or redraw facilities.

What’s the process of refinancing?

Refinancing follows a similar process to applying for a new home loan, but it can be much more straightforward when you understand the steps involved. Here’s what you can generally expect:

1. Understand why you’re refinancing

Being clear on why you want to refinance and what you hope to achieve should be the first question you ask yourself. Knowing the answer to this will help your broker recommend the best solution tailored to your current situation.

2. Comparing home loans

Your broker will compare a range of lenders on your behalf to help identify loan options that may suit your needs and circumstances.

3. Apply for a new home loan

Similar to your original home loan application, you’ll need to provide supporting documents such as proof of identity, income details, employment information and a summary of your assets and debts. Upon receipt of this, your application will be prepared and submitted.

4. Loan approval

If your loan is approved, your new lender will send you a new contract and mortgage documentation for signing.

5. Settlement

Your new lender will arrange to pay out your existing loan with your initial lender. You will officially start making repayments to your new lender.

If you’d like to understand whether refinancing is the right move for you, get in touch with CA ANZ Member Benefits partner AHL. You may also be eligible for a A$500 benefit upon loan settlement through the AHL member offer.*

To get in touch with Accounting Home Loans

Call: (02) 9127 5557

Email: [email protected]

For more information, visit our website.