One of the easiest ways your clients could make a positive financial change (especially when trying to free up extra cash for the year ahead), is a home loan review. I’ve attached an article here outlining the process of refinancing and what your clients should think about if it's on the agenda for them in 2018.

Refinancing - do your clients need it?

Set and forget might work with the oven timer...not so much with a mortgage. Twenty-five years is a long time and things change. With interest rates still at record lows, there are plenty of new options out there for your clients to consider.

When should a client consider refinancing?

It’s time for your clients to think about refinancing when there might be a home loan out there that better suits their needs or will help them pay off their mortgage faster. The important part is knowing when these opportunities arise.

With the current home loan market so competitive there are a lot of lenders offering cheaper options. What’s essential is looking at costs beyond the interest rate. Sometimes the cost of refinancing, ongoing fees and home loan product add-ons can mean a new, seemingly attractive offer can actually be more expensive in the long run.

A mortgage broker can help ensure your clients and landlords always have the right loan for their current needs and their future goals, by regularly reviewing their home loan.

What’s involved in the refinancing process?

The first step for your clients is to determine if they are in a suitable position to refinance. At Loan Market, we can review their situation and compare the products of over 30 lenders to see if there is a more competitive option for them now.

If refinancing is the right decision, the application process is similar to a regular home loan application and a broker can do most of the leg work for them.

Once the new home loan is approved by the lender, the approval documentation, including any special conditions, will be sent to the client to accept and return. The repayment and discharge of the existing home loan will be arranged by the lender and the new home loan will be in place for the client.

If you think your client may be looking to save some money on their home loan, looking to access equity to invest or renovate or perhaps restructure their loan to mitigate against any potential future rate increases, talking to a mortgage broker may be a good idea for them.