Refinancing and Changing Lenders
If you are unhappy with your existing
lender or if you are simply looking for a better deal we have a number of
home and investment loan products that may save you money in terms of
interest rates and fees. If you are looking to consolidate a few debts or
access some of the equity in your home we can assist you by refinancing
your existing debt.
How can we
assist?
We can help you with
the changeover by contacting your existing lender to arrange a payout
figure and preparation of a discharge from your existing mortgage. We will
require your written consent to do this, as well as signing any documents
required by your existing lender.
We will need you to provide the last
six months statements from your existing lender as proof of your existing
debt and demonstration of your repayment ability. Don't worry if you have
had a few minor defaults in the past, we may still have a home loan
product to assist you.
We will require a valuation for your
property, the cost of which you will be required to meet. However, if you
proceed to settlement the cost will be refunded to you. An Application Fee
will be waived.
Miscellaneous
Costs
You might have to pay
early discharge fees or exit penalties to your existing lender. The level
of fees may depend on the amount of your loan and the length of time you
have had your existing loan. In the overall scheme of things, these extra
costs may be more than covered in the longer term by a more favourable
interest rate and/or reduced fees we are able to offer.
Mortgage
Stamp Duty
Providing the name of the borrower and the
property remain the same mortgage stamp duty on a refinanced home loan is
generally exempt. However, if you increase the amount of the loan you will
be required to pay mortgage stamp duty on the amount of the increase. We
will assist you to determine your situation.
Accrued
Interest
When you obtain a payout from your existing
lender it will include all their costs to clear the existing loan,
including accrued interest to the date of settlement. You will need to
allow for the total amount when determining the amount of money you need
to borrow.
Lenders
Mortgage Insurance (LMI)
The LMI fee applies only when
you borrow more than 80% of the property's value (on a fully documentation
loan), this covers the lender if for some reason you cannot repay your
loan and the property is sold for less than the amount of the loan. We
will add the cost of LMI to the loan.
Building
Insurance
Prior to settlement of your loan you will
need to provide evidence that you property is suitably insured. In the
case of a unit this will usually be insurance taken out by the Strata
Plan.
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What to do now
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|
1. |
If you are ready to proceed,
check out our home loan products and select one that best suits you.
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|
2. |
Work out the amount you need to
borrow and use our calculator to work out your repayments. You may
need to contact your existing lender to determine the full amount
required to refinance your debt, including any penalties you may
have to pay. |
|
3. |
Apply for your loan online or
ring us and talk to one of our home loan Consultants to see if you
qualify for a loan. |
|
4. |
If you do qualify for a loan we
can arrange for one of our home loan Mobile Managers to visit you,
at a time and place to suit you, to assist you to complete your
application.
|
| What
you will need when our Mobile Manager calls. |
| When you apply, make
sure you have the following items (we may ask for a few other things
depending on your individual circumstances): |
| •
|
Current six month loan
statements from your existing lender |
| •
|
Details of your current
employment income information |
| •
|
Details about your assets -
their value and any income you get |
| •
|
Details about your ongoing
expenses and regular payments |
| •
|
Information about the type of
loan (our home loan consultants will help you if you are not sure)
|
| •
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The amount you want to borrow.
|
| •
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Copies of your identification
eg. drivers licence etc |
