There are stacks of reasons why you might choose to refinance your home loan.
Better rates or service on offer elsewhere, big dreams to fulfill, or debts to bring under control. Take a look at the 5 steps to refinancing your home loan.
1. Why are you refinancing?
It’s important to be clear about your motivation for refinancing. This is especially important if you’re thinking about switching banks. If it’s a cheaper interest rate you’re after, make sure you’re comparing apples with apples by looking at the loans’ ‘comparison rates’.
If you’re craving better service, ask people you trust about their bank, look at online reviews and research which bank regularly tops customer satisfaction polls and industry awards (hint: it’s Bendigo Bank).
2. It’s time to talk
No big deal, you’ve been through this before.
Drop in to see your local Bendigo Bank lender and they’ll guide you through the refinancing process which may vary depending on your circumstances and what it is you’re trying to achieve. Together, you’ll choose the perfect home loan and run the numbers so you’ll know exactly what your repayments will be.
If everything stacks up…
3. It’s time to apply
As part of the application process your lender may ask you to supply some information such as payslips, rates notice, and statements on debts held with other banks.
If you already have your home loan with Bendigo Bank it’s likely the process will be a whole lot easier. Depending on how much you need to borrow, and how much your house is worth, your lender may need to organise a valuation of your property. This is done by an independent property valuer, not a real estate agent.
4. It’s time to cover up
Once your home loan is approved, it’s time to make sure your insurance is adequate.
If your new loan is being used to make renovations to your home, your home should be worth more. Your home insurance should reflect its new value. If you’ve bought a new car, booked a holiday, or splashed out on some new furniture, you’ll need to consider your car, travel, or contents insurance.
Your lender is also your go-to-guy for insurance so if you have any questions, ask away.
5. Settlement day
The big day has arrived!
It’s worth staying in touch with your lender and your solicitor so they can keep you up to date with the settlement of your new home loan.
From here, it’s hello to a better rate, better service, better car, better holiday, better home, better money management, or better whatever your reason for refinancing.
Our mobile lending team will help with all parts of home lending and they come to you.