Lender

Variable
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LIMITED TIME OFFER
  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
LIMITED TIME OFFER

Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)

  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
Variable
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100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES
  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES

Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)

  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
Variable
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FREE REDRAW FACILITY
  • No application fee
  • Unlimited additional repayments
  • Unlimited free redraw
  • Optional 100% offset can be added for $120 p.a.^
  • Application completely online
FREE REDRAW FACILITY
Variable
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NO ONGOING FEES
NO ONGOING FEES
Variable
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UNLIMITED EXTRA REPAYMENTS
UNLIMITED EXTRA REPAYMENTS
Variable
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NO UPFRONT OR ONGOING FEES
NO UPFRONT OR ONGOING FEES
Variable
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Variable
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FREE REDRAW FACILITY
FREE REDRAW FACILITY
Variable
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NO UPFRONT OR ONGOING FEES
NO UPFRONT OR ONGOING FEES
Variable
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LIMITED TIME OFFER
  • Fast turnaround times, can meet 30-day settlement
  • No ongoing or monthly fees, add offset for 0.10%
  • Extra repayments + redraw services
LIMITED TIME OFFER

Smart Booster Home Loan Discounted Variable - 1yr

  • Fast turnaround times, can meet 30-day settlement
  • No ongoing or monthly fees, add offset for 0.10%
  • Extra repayments + redraw services
Variable
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  • Fast turnaround times, can meet 30-day settlement
  • No ongoing or monthly fees, add offset for 0.10%
  • Extra repayments + redraw services
Variable
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100% FULL OFFSET ACCOUNT
100% FULL OFFSET ACCOUNT
Fixed
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Fixed
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Variable
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Fixed
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Variable
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NO UPFRONT OR ONGOING FEES
NO UPFRONT OR ONGOING FEES

Low Rate Home Loan - Prime (Principal and Interest) (Investment) (LVR < 80%)

    Variable
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    Variable
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    100% FULL OFFSET ACCOUNT
    • Reduce the amount of interest you pay by paying more
    • Easily access additional funds in your redraw
    • Fast turnaround times
    100% FULL OFFSET ACCOUNT
    Variable
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    • Fast turnaround times, can meet 30-day settlement
    • No ongoing fees
    • Unlimited extra repayments

    Construction Home Loan (LVR < 80%)

    • Fast turnaround times, can meet 30-day settlement
    • No ongoing fees
    • Unlimited extra repayments

    Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. All products will list the LVR with the product and rate which are clearly published on the Product Provider’s web site. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of May 25, 2022.

    What Does Home Loan Refinancing Mean?

    Home Loan Refinancing is when a borrower either switches their home loan product with a different one that usually has a lower rate under their existing or a new lender.

    A refinance home loan refers to the home loan product borrowers switch to. Lenders sometimes offer a different set of home loans with their respective rates and features for refinancing applications.

    Borrowers usually refinance their mortgages to get a lower rate or update their loan features and terms to keep up with the ever-changing lending landscape.

    There are two types of refinancing:

    • External – When you switch your loan to a mortgage product provided by another lender.
    • Internal – When you switch your loan to a mortgage product provided by the existing lender.

    When your home loan is left unchecked for quite some time, it can pale in comparison to the newer loan products being offered to new applicants. This makes it ideal for you to review your loans regularly and see if refinancing is necessary to ensure that your mortgage is still as competitive as the ones in the current market.

    Why Should I Refinance My Home Loan? - The Benefits of Refinancing

    While refinancing sounds as simple as switching loans or lenders, it is crucial to know that it is a viable financial strategy that could help you in many ways. Here are some instances where it would be best to refinance:

    Access lower mortgage rates

    Perhaps the most common reason why borrowers refinance is to access lower mortgage rates. Borrowers who stick to their current mortgage for too long usually incur the so-called “loyalty tax”. Lenders usually offer more competitive home loans to first-time buyers or new clients, especially in times when the official cash rate is lowered. This leaves existing borrowers with an interest rate that is a little bit higher compared to the new ones in the market.

    Modify the length of the loan period

    Another reason behind many refinancing applications is to change the loan period. Depending on your situation, you might feel the need to shorten or lengthen your amortization period.

    In doing so, you can either pay more monthly but finish paying the home loan quickly or have lower regular repayments but for a longer loan period.

    When you shorten your loan period, you must brace yourself for higher repayments. On the upside, you will be able to save a lot in interest charges in the long run.

    On the other hand, spreading out your loan for a few more years will help ease the financial burden. This, however, will result in you paying more interest over time.

    Take note that Lenders and Bank may have different conditions on allowing your Home Loan Refinancing, read this post: How Long Before You Can Refinance?

    Switch mortgage terms

    If you currently have a variable home loan and you want to be able to secure your interest rate, you will need to refinance to a fixed-rate mortgage.

    You will be able to lock in your interest rate for a period of up to five years. This way, your mortgage rate will remain unaffected even with a potential rise in the official cash rate.

    Refinancing to a variable rate might be tricky — if you are currently in the middle of a fixed term and you decided to switch to a variable rate, you might end up paying the break costs.

    Remortgage to Release Equity

    As time passes and as you pay off your home loan, you are also building up your equity in your home. This means that the proportion of the total value of your home that you actually own increases.

    Many borrowers take advantage of their equity by refinancing. If the housing market is on an upside, there is a huge likelihood that their properties have appreciated as well.

    Refinancing will allow you to take a portion of your built-up equity and use it to fund any big purchase, such as an investment property, a new car, or a renovation.

    If you need a guide on Home Equity Loans in Australia, read this post: A Guide to Home Equity Loans in Australia

    Consolidate debts

    Refinancing also makes sense if you want to streamline all your other debts besides your mortgage into a single loan.

    This makes sense when dealing with personal loans, which often have higher interest rates. Consolidating these loans to your home loan will allow you to free up space in your budget and manage your finances more efficiently.

    Take note, however, that when you consolidate your other loans to your home loan, you will end up paying a slightly higher interest rate. Read this post for more details: Is Debt Consolidation a Good Idea?

    What Does Home Loan Refinancing Cost?

    The cost of refinancing usually involves upfront fees similar to when you first apply for a mortgage. Most of the time, these fees depend on whether you are refinancing externally or internally.

    Application Fees

    This fee comes in many names, including establishment fee and upfront fee. This one-off payment, which is usually charged when you refinance to a new lender, covers the administrative costs of setting up a new mortgage.

    Valuation Fee

    If you are applying under a new lender, it may require you to have your property assessed to its current market value.

    Discharge Fees

    This fee covers the administration costs required for your current lender to end your loan contract.

    Break Costs

    You will need to pay your lender this fee if you are within a fixed-term period when you refinance.

    Settlement Fees

    This will cover the costs of the settlement process if you refinance to a new loan under a new lender.

    How to Refinance a Home Loan?

    To start your refinancing plans, you need to first review your current home loan, its interest rate, and its features. You will have to compare your current mortgage against the new ones currently being offered in the market.

    Before considering jumping to a new lender, ask your current lender first what options they could give you. Examine how much it would take to refinance according to your purpose.

    You can speak to a mortgage broker to widen the scope of your options. A mortgage broker can help determine which lenders and loan products suit your current financial needs.

    Once you have decided on the best option, prepare all the needed paperwork, submit your application and documentary requirements, and wait for approval.

    If you are switching lenders, inform your current lender that you are refinancing. Your new and current lender will take care of the process after you get approval — you only need to prepare your wallets for the fees.

    For a more detailed view, check out YourMortgage's guide to Home Loan Refinancing: A Step By Step Guide To Home Loan Refinancing

    When Should You NOT Refinance

    While refinancing is a viable financial strategy to relieve some of the stress you have with your mortgage, there are many scenarios where you are better off sticking with your current mortgage.

    If you have a low credit score

    This makes it necessary for you to review your credit score before attempting to apply for refinancing. Refinancing with a low credit score will only get you to a rate that is higher than your current one.

    If you are still on a fixed term

    It is advisable that you finish your fixed term first before you refinance to a new loan or a new lender to avoid the hefty break costs.

    If your equity is below 20%

    When you refinance with equity of below 20%, you will end up paying for lenders' mortgage insurance, which protects your lender in case you default on your loan.

    If you are planning on selling soon

    It may be wise to stick with your current mortgage if you are planning to list your home in the market soon, as the costs might only outweigh the benefits of refinance home loans.

    Frequently Asked Questions

    When you refinance, you are simply switching your current mortgage product with another that better fits your financial condition — this means that you will still be paying for one mortgage.

    There are many reasons why you should refinance a mortgage but the most common reasons to do so include getting a lower rate; reducing monthly repayments; accessing built-up equity; and consolidating debts.

    How much you can save depends on the reduction in mortgage rates you will be getting after you refinance. A small difference in interest can help you save a lot on your loan over the long term.

    You should be able to refinance as often as it makes sense according to your financial needs. However, you might need to consider the costs refinancing involves and the rules and regulations of your chosen lender.

    Ideally, you need at least 20% of equity before you refinance. You can still refinance with equity below 20% but you will need to pay lenders' mortgage insurance.

    You can refinance a fixed-rate loan but doing so within the set fixed term will incur break costs.

    Refinancing can be expensive depending on the circumstances surrounding your application. Typically, refinancing a home loan costs around 3% of the total loan amount but some lenders offer a no-cost refinancing option.

    A no-cost option usually comes with a higher interest rate than the usual refinancing rate to cover any possible closing costs.

    Applying for refinancing could lower your credit score, especially when the lender makes a hard check. The impact, however, is temporary and minimal given that refinancing only replaces an existing loan with another of the same amount.

    Home Loan Lenders

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