Refinancing & releasing equity
Why choose Essendon Finance
We utilise the most reputable lenders in Australia to give you a real choice.
Compare and save again with home loan refinancing
Want to save thousands on your home loan? Refinance your home loan today
Are you paying too much in interest?
According to a recent survey, only 17% of Australian homeowners have refinanced their home loan in the last two to three years. According to the ABS, the number is declining by 0.7% from January to February 2017!
What’s even more troubling is that 40% of Australians have never refinanced their home loan. Australia is now experiencing historic low interest rates. That means there has never been a better time to refinance your home loan.
When you refinance, you’re opening yourself up to new opportunities to save. Switch to a lower rate home loan, or a home loan with an offset account so you can save even more on interest. Choose from over 25 of Australia’s top lenders, all competing for your business. With home loan refinancing, you can slash years off your home loan and save yourself thousands in interest repayments.
Simple, straightforward refinancing
Many homeowners are reluctant to refinance because they believe it’s like applying for a home loan all over again. Endless meetings, paperwork, research – it’s all too much hassle! We understand your frustration, especially if you’ve gone through it in the past couple of years. However, refinancing your home with a qualified, expert broker guiding you through makes the process easier.
Our consultants take care of you through the entire refinancing process. There’s no running around and you won’t have to spend countless hours in front of a computer screen crunching interest rates and comparison rates. Your dedicated consultant takes care of the process and explains everything to you.
If you’re having bad credit history, Essendon Finance can also help. If you’ve made headway in correcting your credit, we can find a better home loan.
Your helpful guides to home loan refinancing
A lot of Australian families are curious about refinancing their home loan. A fair proportion of those people often wonder – how much is this going to actually save me? Surely, we are only talking about a few dollars here and there. That couldn’t be further from the truth! According to the Australian Bureau of Statistics, the national average of savings as the result of refinancing is $259 per month. That’s $3,108 per year. On average, a homeowner will pay off a mortgage over 30 years. This represents an overall saving of $93,240 over the lifetime of that loan! By looking at more loans from more lenders, you could achieve even better savings than the average.
When thinking about refinancing your home loan, you may be considering buying another property at the same time. If your loan to value ratio (sometimes referred to as equity) in your home is reasonable, a bank or lender may extend your mortgage to cover an investment property. (Or they may ask you to pay for Lender’s Mortgage Insurance if your LVR is below 20%.) When you are looking at investment property loans, you should shop around for “investor friendly” mortgages, which include offset accounts or lines of credit for added flexibility. You should also consult a financial professional to help you with tax liabilities.
The Federal Government banned banks and lenders from levying excessive exit fees in 2011. It also banned them from renaming exit fees as something else such as “account termination fees” or something similar. Though the days of four – even five! – figure exit fees are behind us, you should be aware of other fees that banks or lenders may charge when you refinance. Most lenders will charge a termination fee of some kind, although this will be modest. Some banks charge establishment fees, which can add to the cost of refinancing. To make sure your new home loan has the lowest fees possible, talk to a broker or consultant to find out more.
There is no 100% “best” time to refinance, but there are some simple rules to follow to help get the most out of your refinancing. First off, you should not refinance too often, especially if you have low equity in your home. This means buying Lender’s Mortgage Insurance if your loan to value ratio is too low. You should wait at least 18 months before considering a refinance. Other good times to refinance are after rate changes, or every new financial year. This may not result in a full refinancing. It might be enough to prod your current lender into matching or bettering a competing deal.