In 2021, many homeowners are looking to get a better deal on their home loan by refinancing. Because of the pandemic, many Australians have realised that they should take advantage of interest rate cuts to make big savings on their mortgages.
The duration of the refinancing process can vary between borrowers, so it’s important to give yourself more time to refinance than you think you will need. It also helps to refinance during a time where you aren’t experiencing too much pressure in your personal and professional life.
Sometimes the mortgage refinance process can take as little as a week, but there are many elements that can influence the speed of refinancing. In this article we’ll explain how long refinancing can take, what you can do to speed up the process, how much it costs and other factors to consider.
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As mentioned above, it could take as little as a week for a lender to refinance your home loan. However, it’s important to note that the process will differ between lenders. Some lenders will spend more time examining your bank statements, for example, than other lenders would. For other applicants, it can take between 4-6 weeks for a lender to process and approve your refinance.
Other factors that can influence the speed of refinancing:
The best way to improve your chances of getting a quick refinance is to present yourself as the ideal applicant.,To do this, you need to ensure that your application is flawless - that means no errors or missing paperwork..
Getting pre-approved can also speed up the process. Before you even get formal pre-approval, you can get a free, quick insight into the likelihood of getting approved for a home loan with Lendi’s Approval Confidence™ feature. Unlike a formal pre-approval application, there is no credit check involved and you will get a realistic look at your home loan options within minutes.
However, it’s not guaranteed that you’ll be able to refinance your mortgage quickly even when your application is perfect. Delays can happen and some lenders simply take longer than others to process applications.
If a quick refinance is a priority for you, speak to a mortgage broker or Home Loan Specialist for advice. They may be able to recommend specific lenders or provide tips.
As Australia moves towards post-COVID economic recovery, Aussies are looking for ways to save money. With interest rates at record lows right now, there’s a good chance that you could save by refinancing. If your loan is more than 18 months old, you are probably paying more than you need to.
You may not even need to refinance to get a lower interest rate. Find out what rates your lender is offering to new customers and call them up and ask them to lower yours! Read our article on negotiating a lower interest rate for more information.
Other reasons to consider refinancing:
Roll your credit card, car or personal loans into your home loan.
There are usually a number of costs associated with refinancing your mortgage, but these will vary depending on your existing loan, future loan and the lender(s) involved. Before you refinance, it’s important to get a good idea of the costs involved and see whether the benefits of refinancing will outweigh these fees.
Here are some typical costs that may be associated with refinancing:
To improve your chances of getting your home loan refinanced quickly, you’ll need to make sure you submit all the required documents.
Your chosen lender and mortgage broker will tell you what you need to provide, but here is some of the paperwork you will likely need to show:
If you forget to submit any required documents, it can lead to delays in your application. Unfortunately even if you submit all the documentation correctly, your lender may still ask for more information.
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Many banks and mortgage lenders are offering zero fee or low fee home loans as a means to attract more customers in an oversaturated market. You may also come across cashback deals and offers that can help save you money.
While these offers can be appealing, make sure that you are considering ALL the costs involved, as well as the home loan product as a whole. Sometimes lenders offering low fee home loans will charge higher interest rates to balance out costs. The interest rate isn’t the only home loan feature you should consider as it’s important to find a loan that suits you — regardless of fees.
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The information in this post is general in nature and should not be considered personal or financial advice. You should always seek professional advice or assistance before making any financial decisions.
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