Sarah: Are you stuck on high interest rate and perhaps want to decrease your repayments
or maybe you want to get some cash out and consolidate some debt, in this video, we're
going to go through the five easy steps to refinancing your home loan to get you into
a better financial situation.
Sarah: Hi guys, it's Sarah.
Here at Lendi we've already helped thousands of australians refinance their home loans.
Now, before we start, if you're interested in getting great home loan tips in Australia,
please subscribe to our channel.
And don't forget to hit the bell to be notified when we post new videos.
Sarah: Now, the first step to refinancing your home loan is to be very clear as to the
reasons why.
As in, are you trying to consolidate some debt, maybe you want to get some cash out
or just reduce your monthly repayments.
If you need to understand more about the basics, you can watch our video which will tell you
more about it.
Sarah: The second step is to understand the costs and if it really makes sense.
There are different types of fees that you might be charged such as government fees,
legal fees and lender fees.
Now, depending on the lender and your specific scenario is whether or not these fees are
applicable to you.
Now, keep in mind these fees are generally capitalized to the loan and not an out of
pocket expense and the benefits will outweigh the costs.
If you want more information about these costs, you can watch our video which goes into more
detail.
Sarah: The third step is to shop around and compare a variety of lenders.
For example, a reduction in half a percent of your interest rate can save you thousands
over the life of your loan.
You do however need to take into consideration the rate, the costs and the loan terms.
Now, remember, comparing your options with most brokers or Lendi will not impact your
credit score so don't hesitate to do so.
If you want more information about finding the right home loan, feel free to watch our
video that will tell you more about it.
Sarah: Now before we continue, I do want to ask you a quick question.
Is there any reason that you will be hesitant to refinance your home loan or perhaps you
already have refinanced and you've come across some issues.
Please let us know in the comment section below.
Sarah: Now, the fourth step is to apply for your home loan.
And be prepared to share information such as your income and your employment type, your
current home loan and what you want out of a new home loan.
We need to know about your assets, your liabilities, your income and your expenses.
Now, this information is validated through documents and these documents are things like
your payslips and your group certificate.
Perhaps it'll be your tax returns if you're self employed, your home loan statement and
we need to verify your ID with a driver's license or a passport.
Now, if you want to speed up the process, you might want to think about using a platform
like Lendi where you can upload all of your documents and apply online in your own time.
Sarah: Now, the fifth step is understanding what happens after you apply and the pathway
to settlement.
It's not uncommon for lenders to request further documentation after you have applied.
The loan may go through conditional approval, which means that the lender is requesting
more information or it can bypass that process and move straight to unconditional or formal
approval, which means the lender is happy with the loan application and they're about
to draw up the loan contract.
Sarah: Once you sign the loan contract, the documents will be executed and settlement
will be booked.
And the funds will be used to pay out your home loan.
Now, most banks and brokers won't contact you after your loan has settled.
Here at Lendi however, we'll touch base with you frequently just to make sure that your
rate is still up to date and that your loan is still suitable for your needs.
Sarah: So you might be wondering how long the refinance process takes, finding the right
home loan can take less than one hour then generally you hand the loans over to somebody
else who will view and submit the application for you.
Then the settlement process generally takes three to six weeks.
Sarah: That's it guys, five easy steps to refinance your home loan.
If you're wanting to refinance your home loan and wanting to compare your options and the
lender fees, please jump online to Lendi.com.au and look at our online platform.
You can also join our private Facebook group, Home Loan Hacks Australia where we give useful
tips and answer any of the questions that you might have on all things home loans.
The link is in our description below.
Sarah: If you found this video helpful, please give us a thumbs up.
And if you have any questions leave them in the comment section below.
Lastly, if you're wanting more information on how to refinance your home loan, you can
check our video here or if you're wanting to know about better interest rates, you can
watch our video here.