Mortgage Refinancing

If you’ve fallen behind on your mortgage, there are options to help you take control of your finances and move forward. There’s a huge and competitive market out there for home loans and that means you have options to choose from.

Aside from saving money, mortgage refinancing may help you protect your credit rating too.

As an authorised broker for over 35 lenders including the Commonwealth Bank, National Australia Bank, ANZ and Westpac, we can help you decide the best way to consolidate your debt with a mortgage refinancing plan that works for your specific needs.

Since we are a credit licenced broker and a member of the external dispute resolution service, the Australian Financial Complaints Authority (AFCA), we have the authority and credibility to help you refinance your mortgage with confidence. 

Is refinancing your mortgage the right choice for you? Let’s find out.


  • What is Mortgage Refinancing?

    A mortgage refinance is simple. It’s the process of consolidating your debts under a single payment with a new mortgage. Many homeowners use a mortgage refinance to pay off an existing home mortgage with a lower-interest mortgage, but that’s not all it can be used for.

    Because mortgage rates are generally lower than credit cards and personal loans, they can be used to cover all types of debts effectively. However, while mortgages generally attract a lower interest rate, paying off your consolidated debts will likely take longer (a mortgage is typically 25 – 30 years).

  • Benefits of Mortgage Refinancing

    Why refinance your mortgage instead of another debt solution? Refinancing, while a relatively simple process, will take time. Before starting the process, you’ll need to make sure it’s right for you.

    What are the benefits of refinancing your mortgage?

    1. Repay your mortgage (and other loans) faster. The longer you spend repaying your debts, the more you pay. If you want to save yourself time (and money) on either your mortgage or other debts, you could do so with a mortgage refinance.

      For instance, you could cut your mortgage loan term from 30 to 20 years, or you could reduce your monthly payment, allowing you to make additional payments towards your debt.

    2. Save money on interest. This is the most common reason people refinance their mortgage. Achieving a lower interest rate on their debt or existing mortgage is a serious perk.
    3. Unlock the equity in your home. Equity is the difference between the amount you owe on your house and it’s value. It’s what you’ve paid already towards your mortgage. If you want to “unlock” this equity, you can do so with a mortgage refinance.
    4. Avoid bankruptcy. Finally, if you’re not sure where your finances are heading, you can avoid them taking a turn for the worse with a mortgage refinance.

     

    If your home was originally purchased with a bad credit mortgage which you can no longer afford or if you’re unable to keep up with payments, this option might help you get back on track financially.

    Is a mortgage refinance a smart idea for your financial situation? Talk to a refinance specialist today to discuss your options.

  • Steps For Mortgage Refinancing

    If you decide to continue with a mortgage refinance, you’ll need to familiarize yourself with all the necessary steps in advance. Knowing what to expect will help you stay prepared throughout the process.

    Here are the steps for a mortgage refinancing:

    1. Your home loan’s cost – First, you’ll need to look at how much your current home loan costs. You can find this through your mortgage provider.
    2. Look into your rate, amount owed, term, and so on.
    3. Negotiate – Next, you can talk to your lender directly about securing a better deal. If you’re just trying to adjust the amount you owe on your mortgage and not refinance to pay outside debt, this might be all you need to do.
    4. Compare loans – If you’re unable to decide on a deal or you need an outside mortgage lender, it’s time to shop around. Compare home loans, fees, features, and flexibility. This is where a mortgage advisor can really shine.
    5. Apply – Once you’ve found the right loan for your needs, you’ll need to start your mortgage application. To do this, you’ll need your personal and financial information, as well as up-to-date property information.
    6. New budget – Finally, create a new budget with your refinanced mortgage in mind. This will help you move forward with confidence. Talk to a debt professional for help with this step.
  • Mistakes To Avoid

    Before you begin with the steps above, keep in mind some of the common mistakes when refinancing. A little bit of extra research will go a long way towards keeping your finances in top shape.

    Common mortgage refinancing mistakes:

    • Waiting too long – If you wait too long to refinance, you might miss a drop in interest rates. It can be tempting to wait to see just how loan interest rates will get, but time really is of the essence.
    • Adding to your term – In addition, you need to be careful not to add too many years to your home loan. It might be necessary to add some time, but you should do your best to steer clear from this since it means owing more in interest.
    • Marketing rates – A lot of lenders will lure you in with rock-bottom rates with an introductory package. These usually end after 1 to 2 years, and you’ll no longer have that steep discount.

     

    Having a skilled debt specialist on your side will help you avoid falling for these mortgage pitfalls. Contact a friendly professional at Debt Busters today to get started.

  • Refinancing with Bad Credit

    It’s true that a few bad marks on your credit rating could impact your ability to get a mortgage. However, it’s still possible to refinance even if you have bad credit.

    While each situation is different, we’ve helped our clients with bad credit successfully refinance their mortgage. There are specialist lenders that are willing to work with you no matter your credit score, but you’ll need to proceed with caution. Utilise Debt Buster’s help today if you’re trying to refinance with bad credit.

  • Mortgage Help

    Refinancing your mortgage might be the best way to reset your finances. No matter your financial situation, you have options.

    If you’re not sure how to refinance your mortgage, or when to refinance, let the team at Debt Busters help you today. Request a call now and we’ll be in touch shortly with your mortgage refinance options.

Speak to us today

Debt Busters is an Australian owned business which was founded in 2005 - since then we have been able to help thousands regain financial control.

Debt Busters prides itself on providing a dedicated Client Service Manager to work closer with you and provide a higher level of customised service about your situation.