Refinance & Top-up
Refinancing is the process of restructuring or reorganising, your loan to ensure you have the combination of fixed and floating terms that work best for your individual situation.
Should I refinance my mortgage?
Reasons for refinancing a home loan are diverse but generally, you may be looking to achieve one of these objectives:
- Secure a lower interest rate
- Your current bank has said NO!
- Reduce interest charges through debt consolidation
- Avoid ongoing bank fees
- Access new home loan features
- Pay off your home loan quicker (restructuring)
- Avoid putting all your eggs in one basket
- Time to switch from non-bank lender to mainstream bank
- Current Bank not giving good service
- You have an interest-only loan for an investment property
What are the costs involved in refinancing my mortgage?
It is important to weigh out the costs and the benefits of switching banks and ensure that the savings and benefits outweigh the costs.
You may incur one or more of costs in the process of switching banks – some of them are listed here.
- Early Repayment Cost – If you repay your loan before your loan is due for maturity as part of refinancing, your current bank may charge a break fee.
- Discharge Fee – Banks may charge a discharge or admin fee to complete the paperwork involved in discharge of your home loan and transfer it over.
- Legal Cost – Switching to the new bank will involve signing new loan documents in front of a solicitor and the solicitor will charge you for their services.
- Valuation Cost – Many banks give cash and legal fee contributions to ensure the cost of switching is minimum or negligible. Most banks complete an electronic valuation of properties but in some cases banks may ask you to get a physical valuation completed using the services of a registered valuer.