Lower your Mortgage Repayments with a Home Loan Refinance

Perhaps the biggest benefit of shopping around for home loan refinance deals that are available in Australia is the chance to find lower mortgage repayments. Through refinancing, you may choose to leave your current bank so you can find a better interest rate with a different lender. In the process, you may be able to significantly reduce your monthly repayments. Shop Your Own Mortgage can help you refinance your home loan. Call us on 1300 256 081 so our team of mortgage refinancing specialists can assess your current home loan situation.

How much can I save if I refinance my home loan?

Many of our clients at Shop Your Own Mortgage are saving hundreds of dollars every month. The cash you save can be diverted to fund other important household expenses.

Let’s say that you have a $550,000 mortgage balance and you are paying 4.5% p.a. For this 30-year home loan, you are paying $2,786 that covers the principal and the interest. If you are able to refinance your mortgage and to a 3% interest rate, you can slash your monthly repayments to only $2,318 per month. Through refinancing, you could then save$468 every month!
But please take note that we have simplified this example. There are still other factors that you need to consider. For example, your new mortgage lender needs to agree to a 30 year term (OK in most cases), and there may be some switching costs involved.

When is the best time to refinance my home loan?

While there’s no one-size-fits-all reason to refinance a home loan, an average Australian homeowner usually refinances due to one or more of the following factors:

  • Lower monthly mortgage repayments (most popular)
  • Consolidate other debts (including credit card debts, car loan, etc.)
  • Change some features of the loan (debt restructuring)
  • Find home loans with cheaper or even zero fees
  • Pay off loan faster (but may increase mortgage repayments)
  • Better manage cash flow due to unforeseen changes in your household situation (death, loss of job, illness, etc.)

Be sure to check with your current mortgage lender as some fixed rate home loans may require a ‘prepayment break cost’ in order to refinance to another lender.

How to Refinance a Home Loan in Sydney, NSW?

Each bank or mortgage lender in Sydney and Australia has its own process for mortgage refinancing, but in general, the process looks like this:

  1. Review your current mortgage terms and determine the ways you can refinance with either the same lender or another lender
  2. Shop around to look for better deals. You may work with a mortgage specialist like Shop Your Own Mortgage so it’s faster to find refinancing offers
  3. Submit your home loan refinancing application
  4. Once approved, the new lender will pay off your balance to your current lender
  5. Your debt obligation will be transferred to your new lender

Refinancing a home loan in Sydney can be overwhelming. That’s why many homeowners choose to work with mortgage brokers to ease out the process.

For refinancing help, you may call Shop Your Own Mortgage on 1 300 256 081 or send an email hello@syomortgage.com.au