Refinance

Loan refinance, is simply taking out a new Home Loan Product, to replace your current mortgage or loan. It’s a good idea to review your home or investment loan product every two to three years, and compare it with other lending products on the market, to ensure your facility is still appropriate for your lifestyle and financial requirements.

There are many reasons why people will refinance home loans, including:

• To get a better deal or loan product e.g. lower interest rates, little (or no) monthly, or annually fees

• Consolidation of finances e.g. consolidation or combining the of credit card debt, personal loans, car loans & property loan into one loan can save money. Consolidation or combining loans, effectively reduces your interest rate and increases the amount of money available at the end of the month. (More on consolidation, click here.)

• Personal life changes e.g. having children, a cessation in employment, selling / buying investment property

• A bad experience with your current funder may cause you to refinance, and there are many more reasons why.

You might be exiting from a fixed rate loan and the switch to the variable rate loan is too high with your current lender so  this maybe a good opportunity to reassess or move to a more competitive loan, product, professional loan or rate or you just need to refinance to obtain the equity within your property to purchase an investment property or to purchase a new residential home  to improve your lifestyle and turn the existing property into the investment property to build your property empire creating long-term wealth with equity within the these investment properties.

At Neomoney we are able to provide our clients with reports enabling you to compare lender against lender, product against product, rates against rates, and lots more.

Once we have made our reasonable inquiries into your financial situation, personal requirements and objectives, we can generate customised reports to assist in your final credit decision that would be not unsuitable to your financial requirements. 

With these reports you are able to make more accurate decisions, finance plans, finance objectives and spending plans (budgeting) to create your loan term financial wealth, financial security, lifestyle and freedom plans.

Need Cash Out with refinancing?

Lenders are restricting the amount of cash out when a customer refinances a home or investment loan.

With a few lenders you are able to access up to 90% of the property value as cash out.

These funds can be for;

• Personal needs
• Investment
• Business purposes
• Improvements to property or properties
• Renovations
• Removeable Home
• Tax Debt
• Holidays
• Or just about anything you may require the funds or cash out for

If your lender has restricted the amount of cash you are able to take out from your own property then you need to talk to us at Neomoney.

What other costs may I incur with refinancing?

Quick reference of costs to Refinance

Be careful of low Intro or Honeymoon Interest rate loans, once the loan reverts to the standard Variable Rate product it may be higher than a normal discount rate loan on offer. Also check the exit costs of these products, as most of the establishing fees are Zero entry fee to entice you into the product and sting you when you exit.

 Transfer Duty

Transfer Duty was previously referred to as Stamp Duty. Transfer duty must be paid on dutiable transactions for property.

Exit Fees

Exit fees can be know by many names, DERF (Deferred Establishment Refinance Fee), DEF (Deferred Establishment Fee), Termination Fee, Discharge Fee, Documentation Fee, Administration Fee or Discharge Fee.

Exit fees vary widely according to the lender and can apply if you exit a fixed rate loan prior to its full term, repay your loan in full prior to its full term and if you refinance your facility to a new lender.

Settlement

Prior to settlement day the new incoming lender will contact your current outgoing lender and the new Lender will arrange to book in a date to exchange documents for the mortgage to be transferred. On the settlement day cheques/monies will exchange via their own agents for settlement transfer. Once settlement has occurred your new lender will normally confirm in writing or post out a welcome pack to advise of your new home loan details & product features.

For answers to your many questions, simply Call Us on 07 3315 0381 or by Clicking "CALL ME" or eMail ME and we'll talk to you at a time that suits.