Refinance Your Home Loan

Is your loan still earning its keep?

Lenders often give their best rates to new customers. If you’ve had your loan for a few years and never asked for a better deal, there’s a good chance you’re paying more than someone walking in off the street.

Refinancing isn’t always the answer, though. Sometimes a phone call to your current lender gets you most of the way there, and sometimes the costs of switching outweigh the savings. Our job is to tell you which, honestly.

“This was our second time refinancing our mortgage with Joe and Fast Funding. They made the process as easy as possible, extremely professional.”
Adam B., Google review

Reasons to refinance

• A lower rate. Even a small rate difference adds up over a large loan.
• Your fixed rate is ending. This is the most common time to review. Your loan will roll onto the lender’s standard variable rate, which is often not their sharpest.
• Releasing equity for a renovation, an investment property or a business.
• Consolidating debt, such as car loans and credit cards, into one lower-rate repayment.
• Better features, such as an offset account, a split loan or more flexible repayments.
• A change in circumstances: separation, a new business, or wanting to restructure loans across properties.

What we check before recommending a switch

1. Can your current lender match it? We’ll often start by asking your lender for a better rate. If they agree, you save without the paperwork.

2. The real cost of switching.

• Break costs, if you’re on a fixed rate (these can be significant)
• Discharge fees on your current loan
• Application, valuation and settlement fees on the new loan
• Lenders mortgage insurance (LMI) again, if you’d be borrowing more than 80% of the property’s value
• Government registration fees

3. Whether a cashback is worth it. Cashback offers can be attractive, but a higher rate can wipe out the benefit within a year or two. We compare the total cost over a realistic period, not the headline offer.

4. The trap with debt consolidation. Rolling a five-year car loan into a 30-year mortgage lowers the repayment but can cost more in total interest. If you consolidate, we’ll show you how to pay that portion off faster.

5. Your borrowing power with the new lender. Lending rules may have changed since you first borrowed. We check you’ll be approved before anything is lodged.

How the process works

1. Send us your latest loan statement. We’ll do a free loan health check against our panel of more than 45 lenders.
2. We give you the options in writing, including staying where you are, with the costs and savings of each.
3. We handle the application and valuation, and deal with the new lender.
4. We manage the discharge from your old lender, and confirm your offset account is linked on the new loan.

Most refinances take a few weeks from application to settlement, depending on the lender and your old lender’s discharge process.

Example: $461 a month back in a client’s pocket

A Gold Coast homeowner had been with the same lender for several years and asked us to check whether they could do better.

We reviewed their loan and compared options across our panel, looking at their income, loan balance, property value and what they wanted the loan to do for them.

They refinanced to a more competitive loan and cut their repayments by about $461 a month, roughly $5,500 a year, with a loan structure that suits their circumstances now rather than when they first borrowed.

Client details have been changed or omitted for privacy.

Frequently asked questions

How often should I review my home loan?

At least every two years, and always when a fixed rate is about to end. We’ll review it for you.

Will refinancing affect my credit score?

A new application is recorded as a credit enquiry. One well-chosen application has a minor effect. Several applications in a short time can count against you.

Can I refinance if my property value has dropped?

Possibly, but if you’d be borrowing more than 80% of the new valuation, LMI may apply. We’ll get a valuation estimate before you commit to anything.

Is it worth breaking a fixed rate to refinance?

Sometimes. It depends on the break cost and how much you’d save over the remaining term. Your lender can give a break cost estimate, and we’ll do the comparison.

Get a free loan health check

Send us your latest statement or call (07) 5538 8334, or book a time with Joe.

General information only. It does not take into account your objectives, financial situation or needs. Lending criteria, fees and charges apply, and all loans are subject to lender approval. Fast Funding (Australian Credit Representative Number 397509) is a Corporate Representative of BLSSA Pty Ltd (Australian Credit Licence 391237).