I'm Jason Birks, a Brisbane mortgage broker. I compare more than 60 lenders, including yours, and I'll tell you whether refinancing comes out ahead after the switching costs. If your loan is already sharp, I'll tell you that too.
Some of the 60+ lenders I compare
When refinancing makes sense
- Your rate is higher than what your lender, or others, offer new customers
- Your fixed rate is about to end and will roll onto a higher variable rate
- Your property has gone up in value, so a lower loan-to-value ratio could earn a better rate
- You want equity for a renovation, an investment or the next home
- You need features you don't have, such as an offset account or separate splits
- Your income or situation has improved since you applied
What it costs to switch
- Discharge fee. Your current lender charges a fee to close the loan. See mortgage discharge.
- Break costs on fixed loans. If you're part way through a fixed term, breaking it can cost a lot. I'll get the figure before you decide.
- Government fees. Small fees to register the new mortgage and remove the old one.
- New lender fees. Some lenders charge application or valuation fees, and many charge none.
Cashback offers can be worth having, but I compare the rate and fees over the next few years, not just the cash up front.
Releasing equity
Equity is the difference between what your property is worth and what you owe. Most lenders will let you borrow up to 80% of the value without LMI, so if your home has gone up, you may be able to fund a renovation, a deposit for the next purchase or consolidate other debts. Try my equity calculator. Done well, the new money sits in a separate split, so it's easy to track and keep apart for tax.
Fifteen minute chat
Send me your balance, your rate and roughly what the property is worth. No documents needed yet.
I check the market, and your bank
I compare lenders and, where it makes sense, give your bank the chance to reprice. Sometimes a phone call from your lender's retention team is all it takes.
Valuation and application
I order the valuation, prepare the application and handle the lender's questions.
Settlement
The new lender pays out the old loan. It usually takes a few weeks from application, and I'll keep you updated the whole way.
After settlement
My service doesn't end when your loan settles. Over the first couple of months I check in to make sure your repayments, offset and direct debits are set up correctly. Twelve months after settlement I review your loan against the market, and any time in between you can call me about your rate, your equity or your next move.
Questions people ask
Should I just ask my bank for a better rate?
Often that's the first step, and it can work. Your bank will usually offer enough to keep you, which isn't always the best rate available, so it helps to know what the market would offer.
Does refinancing hurt my credit score?
An application is recorded on your credit file. One application with the right lender is better than several, which is one reason to compare first.
Can I refinance a fixed rate loan?
Yes, but break costs can be high. I'll get the exact figure before you decide.
How often should I review my loan?
At least every couple of years, and whenever a fixed rate is ending or your circumstances change. I also review every client's loan twelve months after settlement.
