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Homeowners in Melbourne may be able to refinance their home loan to take advantage of lower interest rates and save money. Refinancing your home loan can also help you consolidate debt, pay off your mortgage sooner, or access equity in your home. If you’re considering refinancing your home loan, compare refinance home loan rates with Break Free Home Loans. Our experienced brokers can help you find the best refinance home loan for your needs and circumstances. Get in touch with us today to compare the best refinance home loan Melbourne offers.
What Is Refinancing Home Loan?
When you refinance your home, you take out a new loan to pay off your existing mortgage. This new loan may have different terms to your existing mortgage, such as a different interest rate or repayment period. You may also refinance to access equity in your home, which you can use for home improvements or other purposes.
Why Refinance Your Home Loan?
To Consolidate All Debts
Get Better Loan Features
Portability If You Are Moving
Choose Fixed Or Variable Rates
About Home Loan Refinance Offers In Melbourne
When considering mortgage refinancing, it’s important to speak with a mortgage broker who can help you compare different refinance home loan offers and find the right loan for your circumstances.
How Much Can I Borrow?
The amount you can borrow will depend on a number of factors, including the equity you have in your property, your income and your debts. But as a general rule of thumb, you can usually borrow up to 80% of the value of your property.
So, if your home is valued at $500,000, you could potentially borrow up to $400,000 when refinancing. Of course, this is just a rough guide – we recommend speaking to one of our mortgage brokers to get a more accurate idea of how much you could borrow. They’ll be able to assess your individual circumstances and give you tailored advice.
Step-By Step Process
The following is a step-by-step guide on how to refinance a home loan:
- Get your home loan health check: It’s time for a home loan health check if you’re thinking of refinancing your mortgage. You need to know where you stand with your current lender, what fees you’re paying and what interest rate you’re on. It’s also important to have an idea of your home’s current market value.
- Shop around: Once you know where you stand, it’s time to start shopping around. Look at a range of refinance home loan offers from different lenders to see how much you could save.
- Consider the costs: There are costs involved with refinancing, such as exit fees, legal fees and discharge fees. Make sure you factor these into your calculations to get an accurate idea of how much you’ll be saving.
- Get pre-approved: Once you’ve found the right refinance home loan for you, it’s a good idea to get pre-approval from the lender. This means they’ve looked at your financial situation and have agreed in principle to lend you the money.
- Lock in your rate: Once you’re pre-approved, you can lock in your interest rate for a set period of time. This means your repayments won’t go up even if interest rates rise.
- Apply for the loan: The final step is to apply for the refinance home loan. You’ll need to provide the lender with your financial information, including your income, debts and assets.
- Get your payout: Once your refinance home loan is approved, you’ll get a lump sum of cash. You can use this money for anything you want, including paying off debt, renovating your home or investing in a property.
Specific Types Of Home Loan Refinancing
Owner-occupied home loan refinance: If you live in your home and are looking to refinance, you may be able to take advantage of an owner-occupied refinance. This type of refinance can help you tap into the equity in your home to get cash out for renovations, debt consolidation, or other purposes.
Investment property loan refinance: If you own an investment property, you may be able to refinance your mortgage to get a lower interest rate and increase your rental income.
Terms And Conditions To Keep In Mind
Refinance Cashback Offer
What Is A Cashback Offer?
A cash back refinance offer is when a lender offers a borrower a percentage of their loan value back in cash to use however they’d like. For example, say you have a $250,000 mortgage and refinance with a lender who offers a 1% cash back refinance offer. That would give you $2,500 back at closing to use as you’d like.
How It Works
Is It Profitable?
A refinance cashback offer can be a great way to get some extra money in your pocket when you refinance your home loan. Here are some common reasons why borrowers take advantage of these offers:
- To make home improvements
- To consolidate debt
- To pay for unexpected expenses
What Offers Are Available?
There are a number of offers available for cash back refinance, so be sure to compare your options and speak with a financial advisor or mortgage specialist to see if this type of refinance makes sense for you. Some refinance offers may require you to:
- Pay closing costs
- Maintain the loan for a certain period of time
- Meet a minimum credit score
- Use the cash back for a specific purpose, such as home improvements or paying down debt
If you’re considering a refinance offer that includes cash back, be sure to compare the offers and terms to find the best deal for you.
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Have Any Questions?
Frequently Asked Questions
What Does Refinance Home Loan Mean?
If you’re looking to refinance your home loan in Melbourne, there are a few things to keep in mind. This includes:
- The type of loan you have: You’ll need to know whether you have a variable or fixed rate loan, as this will affect your refinancing options.
- The interest rate: This is important because it will determine how much you’ll save by refinancing. Make sure you compare rates from different lenders to get the best deal.
- The loan term: The length of your loan will also affect how much you can borrow when refinancing. If you have a shorter loan term, you’ll likely be able to refinance for a higher amount.
- Your home equity: This is the amount of your home’s value that you own outright. The more equity you have, the easier it will be to refinance.
When Can I Refinance My Home Loan?
- How much equity do you have in your home?
- What are your current loan terms and interest rate?
- How long do you plan to stay in your home?
- What are your financial goals?
- What are the costs of refinancing?
If you have equity in your home and you’re looking to save on your mortgage payments, refinancing may be a good option for you. Once you’ve considered the cost to refinance a mortgage, your lifestyle goals, budget and borrowing capabilities, you can shop the market for suitable loan products. Compare refinance home loans from a range of lenders with Break Free Home Loans to find the right loan for your needs.
Why Refinance My Home Loan?
- Lowering your monthly mortgage payments
- Accessing equity in your home
- Shortening the term of your loan
- Converting from an adjustable-rate mortgage to a fixed-rate mortgage
- Consolidating debt
Of course, every situation is different, so it’s important to weigh the costs and benefits of any refinance offer before making a decision. Be sure to speak with a financial advisor or mortgage specialist to see if a refinance is the best option for your needs.