If you’re looking for a more competitive deal on your mortgage, there are smart ways to refinance and take advantage of better conditions. Despite many advantages, however, making the right moves can also be challenging. With so much money and potential risk on the table, it’s important to speak to the right people and ask the right questions from the outset. Let’s look at 10 simple questions to ask your broker before refinancing your home loan.

1. What is refinancing?

Refinancing a home loan is the process of paying out your current home loan by taking out a new loan. There are a few different ways to do this, either with your existing lender or by migrating to a new lender.

2. Why should I care about refinancing?

There are lots of great reasons to refinance a home loan, from accessing lower interest rates and different loan structures to benefiting from fewer fees and more flexible lending conditions.

3. Is refinancing the right move for me?

While refinancing a mortgage can be a great way to save money, it’s not the right move for everyone. Before you decide to go ahead, it’s important to analyse your borrowing capacity, review your existing mortgage plan, and look at your credit score and finances.

4. Is refinancing difficult?

While refinancing a home loan doesn’t have to be complicated, a little homework will help you make the right decisions. A broker can analyse market conditions, determine the likelihood of loan approval, and create a short list of relevant lenders.

5. How quickly can I refinance?

Before you move ahead, you need to review your current home loan, analyse its disadvantages, and check the market for better deals. This is likely to take a few weeks, but mortgage brokers can accelerate the process.

6. What type of interest rates do I want?

One of the primary reasons to refinance is to access a different interest rate structure. If you’re currently on a fixed rate, you can enjoy the competitive advantages of a variable rate mortgage. If you’re currently on a variable rate, you can enjoy the security of a fixed rate.

7. Can I avoid fees when refinancing?

Break fees apply when people move from fixed rate loans to variable rate loans. Refinancing fees apply when people move to a new lender. Regardless of your situation, your mortgage broker will manage the transfer process to help you avoid fees.

8. Should I stay with my current lender?

Refinancing your home loan doesn’t necessarily mean switching to a new lender. In some situations, it’s about getting a better deal from your current lender. Mortgage brokers have access to an entire network, so they can compare home loans from multiple parties. 

9. Should I consolidate my existing loans?

When refinancing a home loan, some people choose to consolidate their existing loans. While this can be useful if you’re struggling with debts, it is risky in some situations. Mortgage brokers can explain your options and provide you with a simple solution.

10. What are the conditions of the new loan?

A home loan is a serious commitment for anyone. Before you refinance, it’s important to read the fine print, analyse the terms and conditions, and review the fee structure. Mortgage brokers can help you to recognise product limitations and avoid mistakes.

If you’re thinking about refinancing your mortgage, Stryve Finance would love to help. For expert advice from a team that cares, please contact us today.