Refinancing AdviceTime flies, yes. But there’s no time like the present. Be smart with your money and let us help you find a better loan solution.
Are you like an elephant sitting on the fence, wondering if it could be a good time to refinance? Maybe you’re questioning whether you’ve got a good rate deal; the best for you and your situation. Whatever your pondering might be, we’re here to guide you to a resolution. Better still, an improved solution! Easy home loans, at your service.
First things first, is a friendly chat. About you; where you’re at and what your options are. We’re big believers in being smart with your money and being proactive in sourcing the best home loan solution for you.
Why are we winning awards? We’re proud to be the most genuine home loan brokers in Melbourne. Not only are we nice to deal with,
we’re good at remembering everything that matters. Like your short or long-term financial goals, and when it’s time to refinance. To us, details matter.
So, shall we chat about where you’re at?
Just in case you have questions, we’ve prepared some answers.
But please don’t hesitate to give us a call. You’ll find a friendly Elephant Advisor at the other end of the phone.
Or, even shoot us a message via Messenger live chat.
Frequently Asked Questions
To qualify for a residential home loan, in most instances you will need to have a deposit saved. To have an easy home loan process, the higher the deposit the better. The deposit provides you and the bank a buffer when you purchase your new home or investment, and lowers the total loan amount required. The amount you need can vary from one lender to another. In general, most lenders and loan products require at least a 20% deposit.
However, some lenders offer loans with deposits as low as 10% or 5% which comes with their own set of conditions. The size of deposit required by a loan is indicated by the loan’s loan-to-value ratio, or LVR. For instance, a loan at 80% LVR would require you to pay a 20% deposit.
Home loan refinancing costs will vary depending on your individual circumstance. However, when we look at your situation, these fees are incorporated to ensure the total cost and benefits are known up front. A few fees that could be applicable from the various banks and lenders are:
Discharge fees: An administration fee paid to your current lender to pay out the existing loan in full and to prepare the required documentation.
Application fees: The fee associated with making a new loan application. These can range from $0 up to just under $1,000.
Valuation fees: A fee charged by the new institution to cover the cost of obtaining an up to date valuation on the property that you are offering as security.
Land registration fees: These are the fees to remove the existing mortgage from your current lender and register a new mortgage to your new lender.
Lenders Mortgage Insurance (LMI): If you have less than 20% equity in your property, your new financial institution may charge you lenders mortgage insurance. This protects the lender against mortgage default. Find out more about Lenders Mortgage Insurance here.
Ongoing fees: Some home loans will charge on ongoing fee. This fee ranges from $0 up to $750 per annum, and can incorporate bank packages.
Break fees: If you have a fixed rate home loan, you may also be hit with a contract break cost if you decide to refinance during the fixed rate period. This represents compensation for any loss of profit to the bank by your decision to break the contract. Break costs may or may not be charged depending on interest rate movements at the time. Click here to find out more about home loan break costs.
There's a number of finance options we provide at Elephant Financial. From residential home loans, investment home loans, commercial property loan, commercial finance and property development finance just to name a few. For the majority of our clients who are buying their first home, next home or investment properties there is no cost for our service.
For more complex requirements, we will always disclose any fees or charges upfront.
When the bank reviews your situation, they will ascertain what the loan is for. For the most instances, your either purchase a place to live (owner occupied) or as in investment. Depending of this, will impact the interest rate you pay.
Why? Well a bank or lender needs to cater for the risk of your loan. In some markets both types of loans attract the some interest rates, in others they vary. It’s important to work on your situation early, to ensure the right loan is picked, for your specific situation.