7 things to do before you refinance

2 min read

21st May 2024

Unlock the potential of refinancing with these 7 essential steps to ensure a smooth and beneficial transition for your home loan!

Refinancing your home loan can be a smart financial move. However, it's crucial to ensure all your affairs are in order before taking the plunge.

Here are seven essential steps to help you prepare for the process!

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1. Assess your financial situation

Look at your income, expenses, and debt. Lenders examine your financial profile, so it's important to have a clear picture yourself. You should also check your credit score as it directly impacts your ability to secure a competitive interest rate. If it’s on the low side, consider delaying refinancing until you improve it.

2. Calculate costs

Refinancing isn't free. You'll have fees such as application fees, valuation costs and potentially break costs if you're exiting a fixed-rate mortgage early. Make sure the long-term savings outweigh these upfront costs.

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3. Research interest rates

Interest rates are crucial when considering refinancing, so it’s a good idea to research what’s available in the market. Knowing the current rates will help you identify a competitive deal when you see one.

4. Compare loan features

Beyond interest rates, also consider features like redraw facilities, offset accounts, or the flexibility to make extra payments. Make a list of what’s important to you and compare various products to find a loan that suits your needs.

5. Consider your life situation

If you're planning significant life changes, such as expanding your family or changing jobs, make sure the new loan aligns with your future plans.

6. Get your paperwork in order

Lenders will require documentation, including identification, proof of income, and information about your debts and assets. Gathering these documents in advance can help speed up the process.

7. Consult professionals

Speak to the team at Vie to get advice tailored to your specific situation. The team can guide you through the options and help you find a loan that fits your needs.