There is no better time than now to refinance your home loan as lenders are keen to win as much new business as they can. But there is more to consider than just your interest rate when taking out a new home loan facility so we’ve compile the questions you should ask your broker when you next refinance your home loan.

Will Refinancing Benefit My Situation?

An experienced mortgage broker can help you assess whether refinancing is a wise decision based on your financial goals. Refinancing could offer several advantages, such as:

• Lower interest rates
• Reduced monthly repayments
• Consolidating debts (e.g., credit cards, car loans) into one convenient repayment
• Paying off your home loan more quickly
• Accessing the equity in your home for extra cash

Are There any Break Costs? If so, How Much

It’s important to know whether there will be break costs when refinancing. These fees typically apply if you switch from a fixed-rate loan to a variable-rate loan and may be ascertained by asking your lender for a “payout figure”.

Should I Refinance to Consolidate Existing Debts?

Refinancing to consolidate debts can save you both time and money in some cases.

Consult your mortgage broker to determine whether consolidating debts through refinancing is a cost-effective strategy for minimising interest charges.

What Are the Costs of Refinancing?

Refinancing involves certain costs, so it’s important to have an idea of the fees you’ll face upfront.

These may include:

• Fees charged by your new lender
• New loan application fees
• Property valuation fees
• Lenders Mortgage Insurance (LMI) if your loan exceeds 80% of the property’s value
• Government mortgage registration and discharge charges.

Your mortgage broker can provide detailsed information of all charges to be incurred.

Can I Access the Equity in My Home?

One of the main reasons homeowners refinance is to tap into the equity in their property. You can use the equity to:

• Invest in property
• Fund home renovations
• Consolidate existing debts

How much equity you can access depends on your remaining mortgage balance and the property’s current value. Your mortgage broker can help you determine how much equity you can release by ordering an upfront valuation prior to lodging an application for determine your equity position.

Which Lenders Offer Competitive Rates and Low Fees?

By asking about the competitive rates and fees, you can decide whether to refinance with your current lender or switch to a new one.

Staying with your existing lender might help you avoid some refinancing costs. However, moving to a new lender could offer better rates and additional features.

A mortgage broker works in your best interest by assessing your situation and helping you find the best available options.

What Loan Features Should I Look For?

While the interest rate is important, it’s not the only factor to consider when refinancing. Lower interest rates can sometimes mean higher overall costs if the loan lacks useful features.

Look for features like flexible repayment options, redraw facilities, and offset accounts—features that are often missing from loans with lower rates. Your mortgage broker can guide you toward the loan options that provide the best features for your needs.

Should I Choose a Fixed or Variable-Rate Loan?

Choosing between a fixed-rate or variable-rate loan is a key decision in the refinancing process.

Your mortgage broker can help you weigh the pros and cons of each option, taking your financial situation into account, to determine which option is suitable for you.

Whatever your primary motivation refinancing your home loan is straightforward when you have an experience mortgage broking team on your side. However, it is key to inform yourself on the process and terms of your new facility so don’t be afraid to ask lots of questions, that’s what we are here for.