Home loan refinance:
A Home loan refinance can be an excellent strategy to ensure you are minimising your interest costs over the term of your home or investment loan.
We review our client’s loan portfolios annually to ensure we are securing them the most competitive package at all times.
How much can I borrow ?
- Borrow up to 90% of the property value to refinance and provide further equity (if required)
- Borrow up to 80% as a low doc refinance
- Borrow up to 60% for a low doc refinance with the lowest interest rates (same as full doc – ask us how)
What do I need to get approved?
- You’ll need to provide atleast 6 months repayment history showing perfect repayment history
- You need a clear credit file
- You’ll need an eligible property with a value higher than the loan amount needed (see above)
- You need to have stable employment and a regular income.
- If you’ve just changed jobs and industries, your property is highly leveraged and you’ve missed repayments you may not be eligible
You may still be eligible to refinance if you don’t meet the above conditions but this will usually be with a smaller lender and more expensive interest rates. Speak to us today to find out your options is the best and easiest way.
Interest rates from:
2.19% | 2.38%* p.a (Comparison Rate)
Lenders available :
Almost all lenders provide a refinance option.
We have up to 34 lenders available (including specialist lenders)
Discover if you qualify:
We can help you refinance a property anywhere in Australia.
How a refinance works
Step 1: Complete a Free Assessment request
- One of our senior brokers will call you to spend 15 minutes running through your position and overall refinancing goals
- Along with that information, you’ll then just need to complete our online client profile form (helps us collect all your official details on employment, assets, liabilities and your living expenses)
Step 2: Refinance report
- We’ll begin securing the sharpest rates possible amongst our 34 lenders
- We’ll look at ways we can structure your application to save as much as possible on interest
- We’ll send you a detailed report (refinance comparison report) showing you the savings in our recommendations
We’ll never recommend a refinance to you if it does not put you in a better overall financial position!
Step 3: Arrange approval & settlement
- Once happy, we’ll send you a document checklist of what we’ll need to secure you a refinance approval
- We will secure you an approval within 5 business days once all documents are returned
- After approval, simply work through executing the new mortgage documents
- Settlement is booked between your old and new lender
Generally from start to finish, our refinance process takes 3-4 weeks (the industry average is 6 weeks).
Is it more difficult to refinance as self-employed?
- No! We have many self-employed lenders and products and can easily assess your eligibility
- You’ll need a minimum 12 months ABN/trading history
- You’ll generally need to be up-to-date on your tax returns or atleast have a strong relationship with your Accountant
Option 1: Fully verified self-employed refinance
- Provide the most recent financial year’s tax return and profit/loss statement
- Provide your Accountant’s contact details so we can discuss your business with them (this is the fastest way)
- Under this policy we can secure the sharpest refinance offers in the market
If this isn’t you don’t give up! We have some surprisingly easy solutions for self-employed – read on..
Option 2: Limited verification *special*
- You can refinance up to 60% of the value of your property
- Provide 12 months BAS only for us to analyse and a declaration of income
- We’ll analyse the above and if eligible, this will also qualify for the lowest interest rates available
Your business will need to be GST registered for a minimum of 12 months under this policy
Option 3: Low Doc verification
- We’ll discuss with you the best options to verify income
- As a guide, the options are: Accountant’s Letter, 6 months of business bank statements or 6 months BAS (if GST registered)
- We’ll analyse the lowest cost solution here for you – but as a guide interest rates can range from 1% up to 2.5% higher than fully verified rates
What are the benefits of a refinance?
Benefit 1: Repayment/cashflow saving
- Lowered interest rate and refreshed loan term can drastically reduce minimum repayments
- Can consolidate other debts to magnify the repayment saving
Our tip: Use the repayment saving as additional repayments to pay off the debt quicker wherever possible.
Benefit 2: Leverage off the equity
- Refinancing can be an excellent time to also redraw the additional equity in the property/asset
- This can allow you to invest into another property to make your assets work harder for you
- This equity can also be used to consolidate debt, conduct cosmetic renovations, further investment or even for a holiday or car purchase
Using equity to invest can be one of the most powerful wealth creation strategies!
Benefit 3: Re-structure the property (if needed)
- This is the best time if you need to add a spouse to the title or remove a guarantor
- There is minimal cost & paperwork to do this when bundled into a refinance
Speak to us today to find out more on how this can work
Valuing my property
How is my property valued?
Once we’ve locked down a lender strategy we will be able to arrange a bank valuation for you (usually at no cost to you).
Here is a general guidelines on the type of valuation needed on different types of applications:
1. Financing up to 80% of the general value of the property: Electronic or desktop valuation only
2. Financing above 80% of the value of the property: Drive-by valuation or full inspection required
You can learn more about this on our guide to different types of valuations page.
How can I find out the rough value of my property upfront?
That’s a good question and one we are asked alot!
You don’t want to play a guessing game trying to find out what equity growth you have in your property or whether or not you can even change banks without having to pay Lender’s Mortgage Insurance (LMI) again (financing above 80% of the property value).
At Cornerstone Lending – your broker has direct access to bank valuation systems along with independent system (such as Corelogic or RPDATA).
We use a combination of these systems as part of our refinance analysis for you to confirm whether you have the value in your property to be eligible for a refinance and the estimated value of your property.
We can send you a detailed report from these systems for you at no cost.
What if the bank values my property for less than expected?
We’ll then work with you to analyse whether it’s still worth proceeding with the refinance application by comparing:
Staying with your current financier at the higher rate
Proceeding with our recommended lower cost lender even with a shortfall in valuation
Applying for a refinance.
If you need advice on your refinance options, please speak to us!
We’ll give you a thorough overview of your position and the most competitive options available to you in the market.
Complete a Free Assessment Form to get started with our team today.