Refinancing - do your clients need it?
It could be time to refinance
Never have we seen interest rates as low as they are today. As we all know, with low rates comes lower mortgage repayments, and as banks respond to the latest cut from the Reserve Bank, there are plenty of new options out there for our existing clients to consider.
When should a client consider refinancing?
When there’s a home loan out there that better suits their needs or will assist them pay off their mortgage faster, that’s when it’s time to refinance. 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 on’s 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 is to determine if your client’s 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 better suited 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're thinking about refinancing see here for questions to ask your Loan Market broker.