How to Refinance Your Home Loan and Get a Better Deal

With interest rates shifting and better offers popping up in the market, many homeowners are asking the same question:

Is it time to refinance? 

If you're looking to reduce your repayments, access equity, or restructure your mortgage, home loan refinancing could be the smart move. Here's how to do it step-by-step.

1. Define Your Refinancing Goals

Start by identifying what you want from home loan refinancing. Are you aiming to lower your interest rate, switch to a fixed or variable rate, reduce your loan term, or tap into equity? Clear goals will help you assess loan options more effectively.

2. Work Out Your Home Equity

Your equity is the difference between your property's market value and what you owe on your mortgage. For example, if your home is worth $900,000 and you owe $600,000, you have $300,000 in equity. 

More equity usually gives you access to better loan terms. Aim for at least 20% equity to avoid lenders mortgage insurance (LMI).

3. Check Your Credit Health

Before applying, order a free credit report from a provider like Equifax or Experian. Review your score and correct any errors. A stronger credit score improves your chances of getting approved and scoring a competitive rate when refinancing.

4. Speak to a Mortgage Broker

A professional broker can analyse your financial situation and help you navigate the refinancing process. They’ll match you with lenders who align with your goals and negotiate on your behalf.

Looking to explore your loan options? Talk to the team at Cube Home Loans. As trusted Logan mortgage brokers, we’ll help you find a refinancing deal that fits your needs. Call 1800 774 756 or visit www.cubeloans.com.au to get started.

5. Compare Loan Offers

Your broker will present you with a selection of home loan refinancing options from multiple lenders. Compare interest rates, fees, features, and repayment flexibility. Even a small drop in your rate can mean significant savings over time.

6. Submit Your Application

Once you've chosen a loan, your broker will help you complete and submit the application. This includes providing documentation such as proof of income, ID, and details about your current loan.

7. Property Valuation

The new lender will usually request a valuation of your property to confirm its market value. This ensures the equity calculations are accurate and helps the lender assess risk.

8. Final Approval and Settlement

If your application and valuation are approved, your new lender will pay off your old loan. From there, you’ll begin making repayments under the new agreement, ideally with better terms and lower costs.

Ready to Refinance?

Cube Home Loans can guide you through the entire home loan refinancing process from start to finish. As experienced Logan mortgage brokers, we make it simple, stress-free, and tailored to your goals. Call us on 1800 774 756 or visit www.cubeloans.com.au to book your free consultation.