With interest rates rising steeply over the last twelve months along with many mortgage holders facing significant increases in their repayments as their low fixed rates expire, there has been record refinance activity in the mortgage market.

However, there are still vast numbers of mortgage holders who remain apathetic about their home loan and are paying more than they need to. A compelling reason for this is that many believe the refinance process is difficult. We are here to tell you it’s not. Here’s why.

To help demystify the refinance process to show that it is not as overwhelming as some may think, the Blackburne Mortgage Broking team have broken down the process to show you that, with the right mortgage broker on your side, its actually pretty straightforward.

STEP ONE: Meet with your mortgage broker

Arrange to sit down with your broker and run through what your current position is and what you hope to achieve by refinancing. Do you simply want a lower rate? Restructure your lending? Consolidate debt? Access equity for a specific purpose? From the information gathered and based on your goals, the broker will be able to suggest potential lenders and products for you to compare and consider.

STEP TWO: Order a Valuation

Fortunately, mortgage brokers have access with most lenders to order an upfront valuation so you can determine what your equity position is. This may determine what lending options you have available, if at all. It also will speed up the assessment process having this in place.

STEP THREE: Lodge an application

After your valuation is returned and your equity position confirmed your broker can assist you in choosing the loan product to apply for and advise what information and documentation will be required for lodgement. Once everything required is at hand and all the necessary paperwork and compliance documentation is completed the application is compiled and submitted with the lender.

STEP FOUR: Lender assessment

The time it takes for your application to be assessed will depend on the current turnaround times with the lender chosen. Credit policies have toughened in recent years and scrutiny of applications is rather fierce nowadays, so it is not uncommon for even the most straight forward applications to have queries raised, but if questions are responded to and additional documents returned to the bank in a timely manner the process is usually quite smooth.

STEP FIVE: Loan Approval and Loan Docs Issued

When your application has been successful with the chosen lender and approval is issued the documentation for the new loan is generated. Many lenders now issue the documentation electronically with your new contract being accepted via Docusign. However, you can still choose to meet with your broker and run through the documents together to make sure any questions you may have are answered.

STEP SIX: Discharging your existing mortgage

Along with the loan documents, your mortgage broker will also assist you in completing a Discharge of Mortgage with your current bank, though some institutions require the client to contact them direct. Your broker will lodge the discharge and ensure it is processed in a timely manner to coincide with your new loan being ready to settle. The outgoing bank and incoming bank will communicate with each other behind the scenes to arrange the transfer.

STEP SEVEN: Certification and Settlement

Once your signed loan documents are returned to your new lender, they check all is in order and certify your file for settlement. Both lenders agree on a day and time to make the transfer and it goes through seamlessly.

STEP EIGHT: Celebrate your new savings

Once you have your new loan in place on a competitive rate and effective structure you can take comfort in knowing that your finances are working hard for you, and you are not paying more than you need to. Refinancing is not hard, particularly when you have an experienced and savvy mortgage broker in your corner. So, what are you waiting for?

There is no better time than the present to refinance to a better rate and ther are still lenders with cash back incentives available – though these could be pulled from the market at any moment. Contact your Blackburne team to get started and enjoy the savings you deserve.