Have you noticed? Everyone’s talking about refinancing like it’s the latest Gameboy in the 90s.  

So what’s all the fuss about? And when it comes to refinancing your home loan, is it as simple as calling your broker and saying “hey, can we do better?”

Well, that’s step one.  

Just like when you secured your first home loan to buy your property, refinancing has a few steps. And it’s potentially worth your while — we’re talking big $$$ savings.

The good news? It’s a whole lot less stressful and overwhelming than the first time around (especially if you have a broker that does all the heavy lifting for you). 

So, let’s jump into how to refinance your home loan — step by step — so you know what to expect and can feel like a total boss when you’re able to explain it to your friends. 

But hold up, what is refinancing? 

Your situation and the property market can evolve significantly over the life of a home loan, so refinancing allows your mortgage to roll with these changing times. 

Refinancing is when you replace your existing home loan with a new one in a way that’s favourable to YOU. It can be with your current leader or an entirely new one. But regardless of who you choose to refinance with, the reason for refinancing is to reach a goal — whether that’s to secure a lower interest rate (and save a whole lot of $$$), change your loan type or use equity to fund another purchase or project. 

Sounding like a good option for you? 

At Finspo, we see first-hand the power of refinancing. And just between us, it’s often worth your while. 

So, how on earth do you make it happen? 

How to refinance a home loan — step by step

Know your goals

Let’s be honest, not many people choose to refinance for the fun of it…

So ask yourself, *why* do you want to refinance in the first place? Is it to save money? Tap into equity to make another purchase? Pay off your home loan sooner? Switch up your loan type or loan features?

The list of benefits of refinancing is long — so it’s time to work out what you’re trying to achieve before chatting with an expert. 

Understand the costs

Ugh, fees. Unfortunately we can’t dodge them when refinancing. 

So before you start the refinancing process, make sure you’re across the common costs of refinancing so you know what to expect. 

But on the flip side, these costs are often outweighed by the benefits (and as home loan experts, we wouldn’t let you start the refinancing process if it wasn’t going to be worth your while). 

Meet with a broker (AKA a home loan expert)

This step might be similar to when you applied for your first home loan, except it’s usually way less stressful the second time around (booyah). And that’s mostly because you now know the ins and outs and don’t have an emotional purchase on the line.

We can’t speak on behalf of all mortgage brokers. But with Finspo, you can get started by providing a few details online and booking a time to meet with one of our home loan experts (online, phew!) 

Once that’s done, there’s not much to prepare at this stage. The main goal of this meeting is to chat through your refinancing goals to see whether it’s a good option for you. 

You might be weighing up options like…

A great home loan expert will cover all the important concepts, and answer all your questions – no such thing as a silly question!

Prepare your docs

Once you’ve had your meeting with a broker and decided you want to get things moving, it’s time to prepare your docs. 

We know, we know, the thought of paperwork is a little BLAH. But pulling together your documentation will help both YOU and the lender (and is a necessary part of the process) — ultimately making sure your new loan is a good fit. Plus, it might be easier (and less paper-y) than you think. 

In Australia, most brokers and lenders will require the same (or very similar) documentation. That includes things like… 

  • Docs to prove your identity (think passport or birth certificate)
  • Docs to prove your income (think payslips or bank statements)
  • Docs to prove your financial situation (think living expenses, credit card debts, superannuation balance — basically anything else to paint a picture of your situation)

Note, this isn’t a conclusive list. Some lenders may request additional information to really get to know the ins and outs of your situation.

With Finspo, you can simply upload your docs to our secure portal and we’ll do the heavy lifting for you. 

Then, sit back while we compare your options… 

Explore your options

Ah, we love options. And a good home loan expert will present a range of different options (with a range of different lenders) so you can choose what’s right for you. 

Your home loan expert can walk you through the ins and outs of each option and explore the features of each. 

Sure, you can try to tackle this on your own. But without the insider knowledge of a home loan expert, it may become tricky to compare the pros and cons of each deal. 

Once you’ve worked with your broker to choose your preferred option, it’s time to make it officially official… 

Apply for your home loan

Goals? Tick. 

Documents? Tick. 

Chosen your preferred option? Tick. 

Now it’s time to do the thing — apply for a shiny new home loan (with the help of your home loan expert, of course). 

At Finspo, we’ll do all the heavy lifting for you.

Property valuation

To be able to refinance, you’ll need an updated indication of what your property’s worth (AKA a property valuation). This will ultimately influence what rate you walk away with (and could even help you move away from paying Lender’s Mortgage Insurance).

Most lenders will request one (or a combination) of …

  • A desktop valuation — in other words, they’ll use online data to get the job done
  • A kerbside valuation — a sneaky (standard) drive-by
  • A short form valuation — a full inspection of your property (*cough* time to mow your lawn *cough*). 

Loan approval

Booyah — this is the official thumbs up from your new lender! They’ve agreed to lend you money. 

Now, you can feel like a total boss for doing something your future self will thank you for. 

All that’s left to do at this step is to sit tight (while your broker gets to work) and wait for settlement… 

Settlement — booyah!

Settlement is a legal process where the new home loan transfers over to you.

Better yet, most of the hard work will be done prior to settlement. In most cases, it’ll just be a matter of working with your broker to set up your new accounts (including offset if you have one), repayment frequency, etc. 

The refinancing process usually only takes between 4 – 8 weeks — so it’s a little bit of work for a whole lot of gain. Because once you’ve refinanced your home loan, you’ll be on track to reach your goals — whether that’s saving money or putting your equity to work. 

At Finspo, our experts make the process of refinancing simple. We’ll run you through the numbers, forecast what your payoff will look like, and even chat with the lenders on your behalf (so you don’t have to!)

If you’re ready to see if refinancing is right for you at this point in time, get started with a Finspo home loan expert. We’ll happily answer your questions (with zero obligation to go ahead). 

Book your time with a Finspo home loan expert today.