When you first took a loan, you would have surely spent a considerable amount of time and efforts in finding the mortgage product that perfectly meets your financial goals and lifestyle requirements! And why not? It’s not every day that you buy a home or a car! Such decisions need a lot of forethought and planning.
However, as time elapses, you might notice a radical change in your financial circumstances! Again, you will also find an influx of new types of mortgage packages becoming available in the market. In such a scenario, your current loan may not be adept to fulfill your needs and goals.
At this time, exercising your refinance loan option may turn out to be the best bet.
Why Opt for Refinancing Loan?
For the uninitiated, the refinance loan process may sound overwhelming! However, if you consider its benefits, you will surely find it to be a lucrative deal for you and your family!
Here’s a sneak peek of how Refinancing can help you:
- Put a substantial amount of dollars back in your pocket.
- Embrace debt consolidation and avail the facility of lesser paperwork, a single loan to repay, and massive savings.
- Utilize home equity for investing in property, shares, upgradation of house, or even fulfilling financial emergencies.
- Enjoy enhanced features and flexibility that can aid in savings of money.
You may wish to refinance home loan for various reasons, ranging from availing a lower rate of interest, upgrading your home, buying a second property, or simply for meeting a financial contingency. Whatever be your aim, here’s how you can go about with the procedure:
- Determine your borrowing capacity by assessing your income and financial commitments, including existing loan, credit cards, and other types of loans.
- Search for products that can give you the benefits of lower rate of interest, portability, and flexibility in repayments, redraws, & rate options.
- Compare the available features with your existing loan.
- Once you find the best suited product, contact the lender, and initiate the application procedure.
- Collate the necessary documents, such as proof of income, statements of loan repayments, insurance policy of the property offered as security, and others.
- After attaining approval for the new finance option, contact your previous lender, and let him/her know that you wish to discharge your current loan.
- When your new lender pays off the outstanding loan amount, confirm that the Title Deeds to the property are transferred to the new lender.
- You may now start making repayments to your new lender.
Just like home loans, you can also refinance personal loan. Here’s a quick run-up of things you need to do and remember while making the switch:
- Conduct a thorough research on the person loan schemes currently available in the market. Compare the features and interest rates, and see if you can secure a better deal than your existing loan.
- Make an estimate of the cost of refinancing. This would typically include break fee, exit fee, and application fee for your new loan. Make sure that the lower rate of interest of the new loan can offset these costs.
- Once you are sure that you have bagged the right deal, start with the application process of the new loan by submitting your application form and allied documents.
- Once the new loan is processed, pay out your existing loan. If the aim is to consolidate your debts, then your lender may help you in this aspect. However, if it is purely for refinance, then you need to make arrangements for transfer of funds.
- Speak to your previous lender and ensure that the old loan account is closed.
If you are considering to refinance car loan, then here’s what you need to bear in mind:
- Explore the finance options and watch out for an interest rate which is cheaper than what you’re currently paying.
- Ensure that the account-keeping fee of the new loan is not higher than what you currently pay.
- hile comparing, keep a tab on the flexibility offered by the new loan, in terms of repayments and the ability to make redraws.
- Make sure that the loan term perfectly suits your financial circumstances.
- Car loans may be secured or unsecured. While secured loans usually attract a lower rate of interest, they demand an asset for security. Consider an option which perfectly suits your requirements.
- Once you’ve made the right choice, proceed with the application process.
- After the approval of the new loan, pay out your current loan, and ensure that the account has been closed.
While it may seem that a bad credit report may forbid you from getting a refinance loan, the truth is that, refinancing can actually help you to fix the situation.
If you have been facing a financial challenge, and not being able to repay on time, then refinancing can help you extend the loan term so that you pay lower monthly repayments! It can also enable you to secure a cheaper rate of interest, lower fee, or improved features, so that you don’t need to worry about losing your property or being in arrears!
Of course, there is no denying that a refinance loan bad credit situation is not an ideal one. Nevertheless, there are specialist lenders who offer bad credit lending services too.
In such circumstances, all you need is an expert advice from an experienced mortgage broker, who can assess your condition, suggest steps to improve your situation, and help you bag the most appropriate deal.
RefinanceToday is a leading-edge mortgage broking firm, which offers a full spectrum of refinance options for Australian home owners. If you have made the choice of refinancing or wondering whether to refinance loan or not, then we can help you to reach your desired destination sooner! Backed by a proficient team of mortgage brokers, we can make the entire process of switching, easy and hassle-free! Speak to our brokers about how you can:
- Improve your financial condition
- Qualify for refinancing your loan
- Enjoy a cheaper rate of interest
- Avail a better mortgage product
- Consolidate your debts
- Explore your options of refinance loan commonwealth bank
- Take advantage of the features of flexibility & portability
At RefinanceToday, we stand by your side at every step of the refinancing process, and ensure that your new finance option lives up to your precise expectations! Here’s what makes us your perfect ally in making your dreams come true:
- A family of mortgage brokers committed to meeting your financial needs.
- Rich expertise and know-how in the domains of financing/refinancing.
- A strong and vast network of lenders offering varied finance options & products.
- Fully capable to render personalized answers to your queries.
- Adept at managing the entire paperwork for the process.
- Great negotiating skills so that you can avail a lower rate of interest.
- Always available at your service at your preferred time and location.
To find out how much you can borrow and what will your repayments be, you can browse our site for the refinance loan calculator!Let’s get started!