Refinancing Home Loans Specialist in Sydney

Refinancing home loans is a strategic move that allows homeowners to replace their current mortgage with a new loan offering improved terms and conditions. Motivations for refinancing include securing lower interest rates, reducing mortgage finance rates, adjusting loan features, and consolidating debts. Given the complexity of the process and the need for lender negotiations, partnering with a refinancing home loans specialist is crucial for a successful journey. Local Finance Guru in Sydney is a trusted name when it comes to refinancing home loans. With our in-depth knowledge and years of experience in the industry, we possess the expertise needed to guide you through the refinancing process.

Understanding Refinance Home Loans

Refinancing a home loan involves transferring the remaining balance from one lender to another, effectively obtaining a new home loan with different terms and conditions. You have the opportunity to select a home loan with a potentially lower interest rate, more favourable features, or reduced fees in comparison to your existing lender. Additionally, it’s possible to switch from a variable-interest home loan to a fixed-rate loan.

How Do Refinance Home Loans Work in Sydney

Refinance home loans in Sydney work by replacing your existing mortgage with a new loan that offers more favourable terms and conditions. Here is how you can refinance your loan.

  • Understand your current financial situation

    Before you start looking for a new home loan, it is recommended to check your current financial position, including factors like your current property valuation. This assessment will help you decide if it is the right time to refinance your loan.

  • Compare home loan options

    Now that you know why you want to refinance your loan, it is time to look at your refinancing options. Thoroughly compare the new loan offers against your current loan, taking into account various aspects.

    • Loan term

    It is the lifetime of your loan. If you refinance the same home loan amount for a longer term, your monthly repayments will become lower. But you will be paying more interest over time. Consider all this when you are assessing your cost savings.

    • Rebate/Cashback

    A rebate is a reduction in the balance of the loan. Compare the interest charges, fees and comparison rates to ensure that you have a good deal.

    • Introductory or honeymoon rate

    A discount on the standard variable rate is applicable for a fixed period, it is usually up to 1 or 2 years.

    • Interest rate

    The annual rate of interest is expressed as a percentage, use it to calculate interest charges on your home loan balance.

    • Variable interest rate

    The interest rate can change anytime on variable rate loans depending on the market conditions.

    • Fixed interest rate

    The interest on fixed-rate home loans will not change for a fixed period which can be 1 to 5 years.

    • Comparison rate

    Utilise the comparison rate to gain a comprehensive understanding of the loan’s total cost, including fees in addition to the interest rate. The comparison rate calculates the applicable bank fees for setting up the new loan along with the establishment and service charges.

    • Service and admin fees

    Take note of ongoing charges like administrative and service fees that may be associated with your chosen home loan.

    • Break cost

    If you repay a fixed-rate home loan before the end of the fixed term, you will be charged exit fees or break costs (early repayment fees). The break cost is often calculated using the difference between the current interest rate.

    • Repayments

    Repayments will be calculated based on the amount you owe to the bank, interest rate and loan term. Your repayments will be lower if the loan term is longer, but you will end up paying more interest in the long term.

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