MAINTAINING A HOME
When is the best time to consider refinancing your home loan?
26 August 2020
There are many reasons to refinance your home loan. You might be ready to renovate or consolidate your debt, or maybe you’re looking for a better deal after coming out of a fixed-term period. Whatever the reason, refinancing your home loan could help provide you with a little extra financial support.
What does refinancing your home loan mean?
When you refinance your home loan, you’ll take out a new mortgage to repay your existing one. You might do this with a new lender, but you may also be able to do it with your existing loan provider.
What are the potential benefits of refinancing your home loan?
In addition to potential benefits such as a more competitive interest rate and the convenience of debt consolidation, refinancing your home loan could provide you with more equity for investments or renovations. In other words, by shifting to a different loan structure, you might be able to access funds based on the equity you’ve built up in your existing property.
Choosing to renovate your home or purchase an investment property or business can help to support your financial future. That said, these kinds of financial decisions can come with additional costs and risks. Be sure to chat your plans through with a financial planner before committing to them.
When should you consider refinancing your home loan?
The timing will depend on your current personal and financial situation. If it’s something you’re considering, you may find it useful to chat to a Suncorp Bank home lending specialist.
You may want to consider refinancing if:
- A better interest rate is available. If your lender’s interest rate isn’t competitive anymore, it might be time to look elsewhere. Don’t forget to ask your current lender for a better deal to see how the rates compare.
- You want to consolidate your debts. If you’d like to consolidate your personal debts into your mortgage, you’ll only have to manage one repayment. This won’t reduce your debt, but may make it more manageable, and could potentially reduce any admin fees.
- You’ve got a steady job. If you’ve been employed in the same job for 12 months or more, a new lender could see this as an indication of your ability to make repayments. Provided you meet a lender’s eligibility criteria, you may be in a better position to be approved for refinance.
When you refinance your home loan, there will be additional costs and fees. At the very least, you’ll need to pay discharge fees to your current lender — usually between $150 and $350 — as well as application fees and mortgage registration fees to your new loan provider. There may also be a break fee (sometimes called an early payment fee) if you have a fixed interest rate home loan and switch before the end of the fixed term.
Find out if now is a good time for you to refinance
Try using Suncorp’s Refinance Calculator to see what kind of refinancing savings you might be able to get. Plus, you could receive a cash bonus up to $3,000 when you refinance to an eligible Suncorp Bank home loan.* A Suncorp home lending specialist can help you understand what's right for you.
*$2,000 for refinanced loans $250k-$749k. $3,000 for refinanced loans >$750k. Excluding Suncorp loans. Apply by 18/12/2020, settle by 26/3/2021. Further T&C’s and eligibility criteria apply. To approved applicants only. See full terms and condtions below.
- How to successfully refinance your home loan
- What’s the difference: Refinancing or applying for a new mortgage?
- How much does it cost to refinance a home loan?
*Receive a $2,000 Refinance Cash Bonus where the total refinanced amount to Suncorp Bank is between $250,000 - $749,999.99 & LVR of <= 90%. Receive a $3,000 Refinance Cash Bonus where the total refinanced amount to Suncorp Bank exceeds $750,000 & LVR of <= 90%. The Refinance Cash Bonus Offer is only available when you are approved for and settle an Eligible Home Loan with Suncorp Bank which must also meet the following criteria: (1) Pre-approvals must be fully approved before 18 December 2020 (2) cannot be a refinance of an existing Suncorp Bank home loan; (3) where total refinance amount to Suncorp Bank is (i) between of $250,000 – $749,999.99, a payment of $2,000 will be made to the borrower; or (ii) where the total refinance amount exceeds $750,000, a payment of $3,000 will be made to the borrower. Limit of one payment per borrower regardless of the number applications which may be eligible. If there is more than one individual borrower, only one payment will be made to them jointly. The customer must hold a Suncorp transaction account held in the name of all borrowers to be eligible for the offer, if one is not held, one will be opened with payment credited within 60 days of the settlement date. Suncorp Bank reserves the right to vary or withdraw the Cash Bonus at any time. Applications subject to credit approval. Fees, and charges may be applicable. Full terms and conditions will be included in our loan offer. Depending on your financial circumstances, you should obtain independent advice before making any decisions regarding the Cash Bonus.
Home Loans are provided by Suncorp-Metway Ltd ABN 66 010 831 722 AFSL No. 229882 Australian Credit Licence 229882 (“Suncorp Bank”) to approved applicants only. Fees, charges, terms and conditions apply and are available on request. Information is intended to be of a general nature only and any advice has been prepared without taking into account any person's particular objectives, financial situation or needs. You should make your own enquiries, consider whether advice is appropriate for you and read the relevant Product Information Document before making any decisions about whether to acquire a product. We do not accept any legal responsibility for any loss incurred as a result of reliance upon it – please make your own enquiries.