Frequently Asked Questions
Refinancing
-
Refinancing is the process of taking out a new loan to pay off an existing loan. This can be done for many reasons, such as to secure a lower interest rate, consolidate debt, or access cash from home equity.
-
A borrower takes out a new loan to pay off an existing one. When refinancing, you pay off your current loan and replace it with a new one from another lender. It is important to note that refinancing does not reduce the amount you owe on the loan; instead, it changes the terms of the loan.
-
When considering whether or not you should refinance your mortgage, there are a few factors to take into consideration. Generally speaking, you may want to consider refinancing if you can get a lower interest rate than your current loan, or if the terms of your loan become too expensive for you to pay comfortably and/or if you’d like to access some of the equity in your home.
-
Comparing refinancing options can be a daunting process, but it is essential if you want to find the best deal. First, you’ll need to identify your financial situation and goals. Consider what the loan is for, the type of loan, and any other factors that might influence your decision. Once you know what kind of loan you’re looking for, start comparing rates from different lenders. Look at multiple banks and online lenders to see who offers the best rate or lowest fees. (This is what a broker will do for you)
It's important to look at more than just the interest rate when deciding on a loan – the origination fee, closing costs, prepayment penalties, and other features should all factor into your decision. Additionally, pay attention to the repayment terms and whether they meet your needs.
First Home Buyers
-
Every state and territory is slightly different, you’ll find the most up to date information at www.firsthome.gov.au
-
Ideally, you should save as much as possible before buying a home. The minimum required deposit depends on the lender and can range between 0-20%, so we usually recommend aiming for 20% if possible.
-
Eligibility depends on the state or territory, www.firsthome.gov.au is a great resource.
Investment Lending
-
Home loans as often referred to as owner-occupied loans. Theses loans are for those who wish to purchase a home to live in. Investment loans are usually for people who wish to purchase a property and rent it out to tenants to make an income.
-
Investment home loan interest rates are usually higher than interest rates on owner-occupier home loans.
General Mortgage
-
Lenders' Mortgage Insurance, or LMI, is insurance that protects the lender, not you. It’s often a one-off payment made by you, the borrower when the loan settles. There are some professions that are exempt from paying LMI, so talk to a broker to find out if this is you.
Can’t find what you’re looking for?
