Refinancer guide

Much like getting your first home loan, navigating the process of refinancing can be confusing and overwhelming. However, it does have the potential to put you in a much better financial situation than you were before. Getting in touch with your Flint broker from the start can ensure you feel confident throughout the process and find the right loan product for you.

Reasons for refinancing

Put simply, refinancing is the act of switching one home loan to another. Sometimes it might involve switching lenders, other times it might be changing your loan product with the same lender. The most important part of refinancing is finding the right loan product for your unique situation and goals.

There are a few key reasons why you might consider refinancing. One of the most common is to take advantage of lower interest rates, lower fees, easier repayment terms and/or switching to a variable or fixed rate.


Another reason is to make use of the equity in your home to purchase an investment property or undertake a renovation. Refinancing can also be used if you need to add or remove someone from the mortgage or title.

Where to start

If you’re thinking about refinancing, the first step is to assess your current financial situation and any goals you may have. Working out the “why” of refinancing will help you decide what is most important when it comes to selecting a new loan.

You should be aware that refinancing is not a free process and you should factor these costs in when making the initial decision. However, in most cases, these fees and costs will be balanced out by the benefits of refinancing.


You can choose to go through the process of refinancing by yourself, however this can be time-consuming and involve a lot of work researching and contacting lenders. A Flint broker will have easy access to dozens of lenders and will be able to assist you with choosing a product to suit your specific needs.


The next step is finding out how much you are able to borrow. Online calculators, or your broker, will help you work out your loan-to-value ratio (LVR). LVR is your home loan amount divided by the value of your property. In most cases, lenders will allow you to borrow up to 80 percent of the value of your home when refinancing.


When assessing an application to refinance, lenders are typically looking at several factors. These can include the applicant’s income, assets, credit scores, home equity and debts.


Timing is important when you’re thinking about refinancing. Keep up-to-date with the Reserve Bank of Australia’s (RBA) announcements as a sudden drop in interest rates can be a great time to secure yourself a better rate. It’s also a good idea to understand market conditions and
the value of your property. If you believe your property’s value has risen, this is another good time to refinance.

Home equity loans

If one of your main reasons for refinancing is for a large one-off purchase, such as an investment or renovation, you may want to consider a home equity loan. This loan will act as a second mortgage and allow you to borrow against your home’s equity without altering your current mortgage.

It’s important to note that if you opt for a home equity loan you will be unable to access a change in interest rates or terms, however, it will involve lower closing costs than refinancing. A broker will help you understand each option and which is best for you.

Choosing a loan product

When it comes to choosing a loan product, there are a few key things you need to look out for. One is the fees and charges that may be applicable. These can include, but are not limited to, application fees, discharge fees, break fees, switching fees and administration fees.

The next step is comparing the features of the loan. Does it offer an offset account or redraw facility? Is it fixed, variable or split? Are there any incentives, such as a cashback offer, fee waivers or competitive rates?


Before you settle on your loan product, it’s a good idea to carefully read the Product Disclosure Statement (PDS) provided from the lender to avoid any surprises later on.

The application process

Once you’ve selected the lender and loan product for you, it’s time to start the application process. If you’re going through a broker, they will assist you through this step-by-step. If you’re doing it yourself, you can contact the lender directly or apply online.

The first step is to get all of your key documentation together. This typically includes identification, proof of income, debt information, assets, a list of expenses, and information about your current loan.


When the lender has received all of the supporting documentation, the approval process begins. This can take between four-to-six weeks, however your broker or lender can give you a more accurate estimate.

Approval and settlement

If your application is successful, your lender will provide you with a contract and documentation about the new mortgage. If everything is correct, and you are happy to proceed, you will sign the new contract and your new lender will coordinate with your old lender to transfer the loan.

Book your free consultation with Flint today. Get clear guidance and mortgage solutions to take advantage of your equity.

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