A Fresh Start: Refinancing Your Home Loan for a Better Financial Future
Are you looking for a better interest rate to lower your home loan repayments? Are you planning to buy an investment property or finally considering the renovation you’ve always dreamed of? Home Mortgage Refinancing might be the answer you’re seeking. At ARG Finance, we have a team of refinancing mortgage brokers who can compare hundreds of loans from a wide range of lenders and work closely with you to find the right option for your individual needs.
What is Refinancing?
Referred by some as ‘loan switching’, refinancing is basically the process of paying out your current home loan by taking out a new loan. This can be done with a new loan from your existing lender or through a different lender. Refinancing is usually good for those who find that their current loan is no longer suitable for their changed circumstances.
WHAT CAN YOU REFINANCE FOR?
Mortgage refinance can be used for a range of projects and goals, including:
- Renovation and home improvements
- Paying off all debts by rolling them into one loan
- Obtaining a cheaper rate
- Accessing cash for vehicle or appliance purchase
- Switching from a variable rate to a fixed rate
DRAWBACKS OF REFINANCING
It’s important to be mindful of the potential drawbacks of refinancing, which may include:
- At times, short-term costs can exceed the long term savings
- Paying interest on the balance for a much longer period
BENEFITS OF REFINANCING
Refinancing a home loan can offer a number of benefits, such as:
- Peace of mind with fixed monthly repayments
- Reduced interest rate and monthly payments
- Flexibility to pay off loan quicker
- Consolidation of debts (credit cards, personal loans and other debts)
- Unlocking the equity in your current property to finance your plans
SITUATIONS WHEN REFINANCING SHOULD NOT BE CONSIDERED
There are some situations wherein a refinance in Melbourne should not be considered, including:
- If there is a costly exit fee applicable on your old loan
- If you don’t have a reasonable amount of home equity, which is at least 20% of your property’s current market value (in this case, you will have to pay Lender’s Mortgage Insurance)
- If your credit history has a few black marks of missed repayments or overdue bills
Loan Features to Look Out For
Refinancing services can give you access to additional home loan features, such as:
- Flexible repayments and extra repayments to pay off the loan sooner
- Repayment holiday to take a break from repayments
- Offset account to reduce your monthly interest and repayments
Additional costs associated
EXIT FEES
When you pay off your loan early (for example, in the first 3-5 years), exit fees are applicable. These are either a percentage of the loan balance or a fixed amount.
BORROWING COSTS
During refinancing, the new lender often charges a range of upfront fees which may include:
- Loan application fee
- Valuation fee for a professional property valuer
- Settlement fee
LENDERS MORTGAGE INSURANCE (LMI)
LMI is paid by the borrower to insure the lender of any risks in case the borrower defaults in their repayments. If you are borrowing 80% or more of your property’s value, then LMI is applicable to you. Also, LMI is a non-transferable payment, which means that you’ll have to pay LMI again if you refinance.
STAMP DUTY
Stamp duty is the tax charged by the state government on your mortgage and is calculated against your loan amount. If refinancing increases the size of your home loan, you will have to pay stamp duty.
MORTGAGE REGISTRATION FEE
A mortgage registration fee is paid for registering your loan onto the property’s title record to the Land Titles Office or equivalent.
Refinancing calculators
HOW ARG FINANCE CAN HELP
When refinancing your loan for any reason, it pays to do your homework. To set ourselves apart from other mortgage refinance companies, our highly knowledgeable and experienced brokers:
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- Take an objective look at your individual situation, your goals and your current loan to give you an accurate picture of how much you can borrow and help pick the right loan for you.
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- Clarify the costs and the benefits of refinancing to ensure you understand if it is going to be a profitable option in the long run. Also, you’ll be informed of all the associated fees so that there are no surprises for you.
- Support you at every step of the way and guide you through the application process whilst streamlining it for you.
We also give you access to a refinancing calculator that gives you a breakdown of your repayments, potential savings and interest. We pride ourselves on having more than one refinancing home loan calculator you can use, allowing you to know what to expect.
The Importance of Working with a Home Loan Refinancing Expert
Navigating the complex world of home loan refinancing can be daunting, especially if you’re not familiar with the latest market trends and lender offerings. That’s where working with a skilled home loan refinancing expert can make all the difference. At ARG Finance, our home loan refinancing Melbourne specialists have the knowledge, experience, and industry connections to help you secure the best possible refinance home loan for your unique needs and circumstances.
By partnering with a home loan refinancing expert, you can save valuable time and effort that would otherwise be spent researching and comparing loan options from various lenders. Our brokers have an in-depth understanding of the lending landscape and can quickly identify the most suitable refinance home loan Melbourne products for your specific situation. We’ll work closely with you to assess your financial needs, long-term goals, and risk profile, ensuring that we find a refinance home loan that aligns with your objectives.
In addition to streamlining the loan application process, our home loan refinancing Melbourne specialists can also help you secure more favourable loan terms. With our strong relationships with a wide network of lenders, we can negotiate on your behalf to secure competitive interest rates, lower fees, and more flexible repayment terms. This can ultimately save you money and ensure that your refinance home loan Melbourne works for you, not against you.
Tailored Solutions for Your Unique Needs
At ARG Finance, we understand that every homeowner’s situation is unique. That’s why our home loan refinancing experts take a personalized approach to finding the right refinance home loan for your specific needs and goals. We’ll take the time to understand your financial circumstances, property aspirations, and long-term objectives, ensuring that we can recommend the most suitable home loan refinancing Melbourne options for you.
Our extensive panel of lenders includes major banks, non-bank lenders, and specialist mortgage providers, giving us access to a wide range of refinance home loan products. Whether you’re looking to lower your monthly repayments, access equity for renovations or investments, or consolidate your debts, we can help you find the perfect fit. We can also assist with specialized loan products, such as fixed-rate loans, split loans, and interest-only loans, depending on your unique needs and preferences.
Comprehensive Support and Guidance
Refinancing your home loan is a significant decision, and we believe in providing comprehensive support and guidance to help you make informed choices and navigate the process with ease. Our home loan refinancing Melbourne specialists will be with you every step of the way, from the initial consultation to settlement and beyond.
We’ll help you understand the refinancing process, including the various steps involved, the documents required, and the costs to expect. We’ll also provide expert advice on how to maximize the benefits of refinancing, such as accessing equity for wealth-building strategies or optimizing your loan structure to pay off your mortgage faster. Our goal is to empower you with the knowledge and confidence you need to make the most of your refinance home loan.
Once you’ve decided to proceed with refinancing, we’ll assist you with the loan application process, ensuring that all the necessary documents are in order and that your application is presented in the best possible light. We’ll keep you informed of the progress of your application and be available to answer any questions you may have along the way.
The ARG Finance Difference
Choosing the right home loan refinancing partner can make a significant difference in your overall experience and outcomes. At ARG Finance, we pride ourselves on our customer-centric approach, expertise, and commitment to supporting homeowners throughout their refinancing journey.
Here’s what sets us apart:
- Specialisation: We have a deep understanding of the home loan refinancing Melbourne market, allowing us to provide targeted advice and solutions tailored to your unique needs.
- Wide range of lenders: We have access to a diverse panel of lenders, ensuring that we can find the best refinance home loan options for your situation.
- Expertise and experience: Our team of home loan refinancing experts has years of experience and a wealth of knowledge in the mortgage industry, allowing us to navigate complex scenarios and find creative solutions.
- Ongoing support: We’re committed to being your partner in home loan refinancing, providing ongoing support and guidance long after your loan settles.
- Cutting-edge tools: Our refinancing calculators and other innovative tools help you make informed decisions and understand the potential benefits of refinancing.
Unlock the Potential of Your Home Loan
If you’re considering refinancing your home loan, now is the perfect time to explore your options. With interest rates at historic lows and lenders competing for your business, there may be opportunities to save money, access equity, or secure a loan structure that better suits your needs.
At ARG Finance, our experienced home loan refinancing Melbourne specialists are ready to help you unlock the potential of your home loan. Contact us today to schedule a consultation and discover how we can help you achieve your financial goals through refinancing. With ARG Finance by your side, you can navigate the world of home loan refinancing with confidence and ease, knowing that you have a trusted partner dedicated to your success.
Don’t settle for a home loan that no longer serves your needs. Take control of your financial future and explore the possibilities of refinancing with ARG Finance. Together, we can help you find the right refinance home loan Melbourne solution to support your evolving needs and aspirations. Let us help you start your journey towards a brighter, more prosperous future today.
Frequently Asked Questions
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Home loan refinancing involves replacing your current home loan with a new one, often to secure a better interest rate, access equity, or consolidate debts. It can help you save money, pay off your loan faster, or achieve other financial goals.
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A home loan refinancing Melbourne expert can compare hundreds of loans from various lenders, assess your unique circumstances, and provide tailored advice to help you find the most suitable refinance home loan for your needs and goals. They can also negotiate better terms and guide you through the application process.
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ARG Finance offers specialised expertise in the home loan refinancing Melbourne market, access to a wide range of lenders, personalized advice, ongoing support, and cutting-edge tools like refinancing calculators to help you make informed decisions and maximise the benefits of refinancing.
Process of Refinancing
The process of refinancing a loan is very similar to the process of applying for a home loan. Still, here are the following steps that people typically follow:
1 STEP ONE: RESEARCH
Compare your current loan and interest rate with what other lenders are offering. Are there one or more competitive options worth considering? Could you potentially save thousands of dollars in the long run by switching to a different provider?
2 STEP TWO: CONSIDER YOUR REASONS
Evaluate your motivation behind refinancing a loan. Is it because you are looking for a lower interest rate, accessing equity for emergency cash needs, wanting to switch to a different loan with better product features, or refinancing for debt consolidation?
3 STEP THREE: PICK THE RIGHT LOAN
Create a ‘shopping list’ of the features you want and then choose a loan that fits all or most of these criteria. You can get advice and guidance from our refinance mortgage broker to discuss your options.
4 STEP FOUR: SUBMIT THE APPLICATION
The approval process is going to be very similar to your previous loan process unless you’re going with a different lender, in which case you’ll need to provide the following paperwork:
- Recent pay slips
- Documents of your existing loans
- Your latest council rates notice
- Evidence of the building insurance policy
5 STEP FIVE: VALUATION
Valuation of your current properties will be done by the new lender, and it is often chargeable for anywhere between $200 and $300.
6 STEP SIX: FINANCE APPROVAL
At this point, your lender will give you a formal or unconditional finance approval and will instruct a solicitor to prepare the loan documents on their behalf to get them approved and signed by you.
7 STEP SEVEN: ARRANGING SETTLEMENT
Your new lender will settle your previous loan with your previous lender for establishing a new loan. Once this process is done, you have a brand-new loan!
Enquire Now
Look no further than ARG Finance for expert assistance with refinancing. Give us a call or send us an email and one of our team members will contact you as soon as possible.
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