Refinance A Loan

How to Refinancing a Home Loan or Investment Loan

Loan refinancing is simply taking out a new mortgage loan product with the same or different lender, to replace your current mortgage loan product for a more competitive interest rate, better loan product, lifestyle, wealth creation or to consolidate a few loans. It’s a good idea to review your home or investment loan product every two to three years, and compare it with other lenders products on the market, to ensure your loan facility is still appropriate for your lifestyle and financial requirements.

Loan Comparison Calculator

On the Neomoney calculator web page, look for the Loan Comparison Calculator to compare a few lender products & interest rates to see the savings on interest saved between lenders interest rates. The Calculator can also calculate fixed interest term as it converts the variable rate for the duration of the loan term. Make sure you add in all the annual or monthly fees to give you a more accurate figure of interest saved as you may be amazed on the savings by just comparing 2 products.

The money saved each month can be thousands of dollars over the life of a loan or a number of loans.

Reasons To Refinance A Home Loan

There are many reasons why people refinance their existing property home loans, for example:

+ To save on interest loan repayments
+ To save on or have no ongoing monthly or annual fees
+ Be able to make additional repayments either weekly or fortnightly to reduce the term of the home loan
+ Consolidation of finances e.g., consolidation or combining the credit card, personal loan, car loan & property loan into one manageable facility.
+ Consolidation or combining loans, effectively reduces your loan interest rate and increases the amount of money available at the end of the month.
+ Personal life changes e.g., having children, a cessation in employment, selling / buying an investment property
+ A bad experience with your current lender may cause you to refinance, and there are many more reasons why.

You might be exiting from a fixed rate loan and the switch to your current lenders variable rate loan is at a much higher interest rate, so therefore it maybe a good opportunity to reassess or move to a more competitive interest rate loan facility, product, professional loan or that you just need to refinance to obtain the equity within your property to purchase an investment property or to purchase a new residential home to improve your lifestyle and turn the existing property into the investment property to build your property empire creating long-term wealth with equity within these investment properties.

At Neomoney, we are able to provide our clients with reports which enabling you to compare lender against lender, product against product, rates against rates, and lots more types of reports and information.

Once we have made our reasonable inquiries into your financial situation, personal requirements and objectives, we can generate customised reports to assist in your final credit decision that would be not unsuitable to your financial requirements.

With these report you are able to make more accurate decisions, finance plans, finance objectives and spending plans (budgeting) to create you long term financial wealth, financial security, lifestyle and freedom plans.

Need Cash Out With Refinancing?

Lenders are restricting the amount of cash out or re-draw on equity when a customer refinances a home or investment loan.
With a few lenders you are able to access up to 90% of the property value as cash out to use for future investment purposes.

These funds can be for:

+ Personal needs

+ Investment

+ Business purposes

+ Improvements to property or properties

+ Tax Debt

+ Holidays

+ Or just about anything you may require the funds or cash out for

If your lender has restricted the amount of cash you are able to take out from your own property then you need to talk to us at Neomoney.

What Other Costs May I Incur With Refinancing?

YOUR CURRENT OUTGOING LENDER COSTS

+ Lender Exit Fees,

+ Fixed loans will incur a break cost,

+ Discharge & Registration of Mortgage Fee.

NEW INCOMING LENDER COSTS

+ New Application Fee or Professional Package Fee

+ Lender Legal Fee

+ Government Title Transfer Fee

NOTE!

Be careful of low Intro or Honeymoon Interest rate loans, once loan reverts to the Standard Variable Rate product, it may be higher than a normal discount rate loan on offer. Also check the exit costs of these products, as most of the establishing fees are Zero entry fees to entice you into the product and sting you when you exit.

Purchase Stamp Duty Registration Fee

Transfer Duty was previously referred to as Stamp Duty

Stamp Duty on a mortgage has long gone however, you will need to pay the Purchase Stamp Duty on a purchase.

Click on the Property Fees (Image) to the right to bring up the Purchase Stamp Duty Calculator to work out the government fees associated with a purchase or refinance.

Refinance Settlement Day

Prior to settlement day, the new incoming lender will contact your current outgoing lender and the new incoming lender will arrange to book in a settlement date to exchange documents for the mortgage to be transferred. On settlement day cheques and monies will exchange via their own settling agents for the refinance settlement transfer. Once settlement has occurred, your new lender will normally confirm in writing by posting out a welcome pack letter to advise of your new home loan account details & lender product features. Allow one week to receive your welcome pack with your new account details.