Fornaro are always available to review your current lending struction. Here are some questions that you may want to ask to work out if it’s time for a review:
– Am I paying an unreasonably high interest rate?
– Am I paying high fees?
– Am I happy with the service I receive?
– Does my loan give me the features I need?
– Am I paying for features I don’t use?
– Have my financial circumstances changed?
In this article, we provide the process to refinancing your home loan, breaking it down into simple layman’s terms. But before we get into that, let us clear up a few common questions about refinancing.
In general, there are four main reasons to consider refinancing.
We’re currently experiencing a low interest rate period, so there are many competitive home loan products available. It’s a good idea to review your home loan every two to three years.
You should always talk to Fornaro because our opinion is not biased towards any particular lender or product. (Unlike a bank which will push whatever loans they have available at the time.) And we won’t suggest that you refinance if it isn’t the right move for you.
We’ve explained the when, who and what of refinancing, but what’s the actual process involved? Here’s a simple step-by-step guide.
Step 1: Speak to Fornaro
Before we begin exploring your loan options, it’s important for us to have a sound understanding of where you’re at financially and what you’d like to achieve. We’ll start by reviewing your current home loan and compare it with others in the market. This is the time when we help you decide if it’s the right time to refinance your home loan and what features may be beneficial for you.
Step 2: Choose your mortgage and apply
You may opt to stay with your current lender by negotiating a better rate or changing to an alternative product; or refinance by switching to another lender offering a more competitive rate or loan features to suit your current circumstances. We’re here to assist you find the right home loan to fit your personal goals and objectives. Then Fornaro will prepare nad submit your application.
Step 3: Valuation
Your new home loan provider will require a valuation on your property as part of the application process. Keep in mind that their valuation might be more conservative than the market value you estimate.
Step 4: Get approved
After your application has been assessed by the lender, Fornaro will contact you to confirm that your new loan has been approved. The timeframe for this will vary based on the lender chosen and the complexity of your individual financial structure.
Step 5: Your previous mortgage facility will be closed
Fornaro will arrange for you to complete a ‘discharge authority’ form from your previous lender. Your current lender will then provide a payout figure. Your new lender will fund your loan to ‘pay out’ your current loan provider. If you’re refinancing to consolidate other debts, for example, credit cards or personal loans, these will be finalised with the proceeds of your new loan at the same time.
Step 6: You start afresh!
Once you have your new home loan in place, you will begin making repayments. If you need any assistance managing your new home loan, we are always here to lend a hand.
We hope you’ll find this guide to refinancing handy, and we would love to help you decide whether refinancing is the right step for you.
The current COVID-19 pandemic has produced record low rates so now is good time for us to the review your home loan with you. Fornaro can assist you explore your options and walk you through the process. Get in touch today, you never know how much you could be saving.