Varying Your Home Loan

During the life of your home loan it is likely that you may want to vary it in some way. This might be a total refinance, or it might be that you wish to stay with the same lender but change the structure of your loan. This is particularly common in uncertain times. 

The types of variation you could be considering might be:

  • Switching from a variable loan to a fixed loan
  • A change of loan products, say from a basic product to one that has an offset account.
  • Switching from an interest only loan to paying principal and interest.
  • Switching from a principal and interest loan to an interest only loan.
  • Seeking an increase for a suitable purpose. 

Generally the fees involved are minimal, if any at all, however if you are wanting to break a fixed rate the costs could be significant so it’s important to be informed before you begin.

If you are doing a straight forward variation, depending on your lender it may be as simple as a phone call. They may require signed documentation but in most cases it is minimal. 

Variation scenarios where more information may be required:

  • Going from principal and interest to interest only 
  • Seeking to increase your home loan.

In these instances servicing will need to be factored into the equation so you will have to provide information and evidence of your current financial situation.

Whatever the reason, organising a variation can be simple. It is ideal to talk to your mortgage broker before you begin any variation processes. We can help you work through the options available to you to ensure a smooth process. Contact us to find out more.