As your finance specialist, here’s what we do to guide you through a smooth refinancing transition.
One of the great reasons to use our finance services to help with your refinance is because we do this daily as part of our role.
We know what to do, what to look for and how to determine a range of suitable lenders who are most likely to approve your application.
Before we start
What we will do:
Assess your financial goals We like to understand why you want to refinance because your reason will determine the actions and possibly the lenders we present as the best option to you. Are you looking to refinance because you want: □ a lower interest rate? □ to reduce the term of your loan? □ to access the equity in your home? □ to consolidate your debt? □ to improve your serviceability? □ or another reason?
Factor in break costs If you have a fixed rate loan, you may incur break costs if you refinance before the fixed term ends. We need to evaluate whether it is financially advantageous for you to refinance now or wait until the fixed term ends.
Check your credit score A good credit score will help you qualify for better rates. Ideally your credit score will be at least 760 or higher. And if it’s not, we will consider other options for you.
Calculate your debt to income ratio (DTI) Lenders prefer a DTI of 36% or lower.
Review living expenses We will thoroughly analyse your income and expenses to assess your borrowing capacity and ensure the new loan is affordable. This involves:
Income verification We’ll verify your income sources, including employment income, investment income and any other relevant sources.
Expense analysis We’ll examine your regular expenses, such as rent/mortgage payments, utilities, groceries, transportation, debt repayments and any other recurring costs.
Discretionary spending We’ll also discuss your discretionary spending habits, such as entertainment, dining out and travel to get a complete picture of your financial situation.
Future expenses We’ll consider any anticipated changes in your expenses, such as upcoming tuition fees or planned renovations.
By reviewing your living expenses in detail, we can:
Determine your borrowing power Accurately assess how much you can comfortably borrow based on your income and expenses.
Identify potential savings Discover areas where you might be able to cut back on expenses to free up more cash flow for loan repayments.
Tailor a loan best suited to your needs Recommend loan options that align with your financial situation and lifestyle.
Ensure long term affordability Help you avoid overextending yourself financially and ensure the new loan remains manageable in the long run.
Research a range of lenders and review policies on our panel To save your time we: ✓ compare interest rates ✓ fees ✓ serviceability criteria ✓ and the different features available from different lenders We may consider contacting your existing lender to negotiate a better deal for you as well as considering options from both traditional banks and other second tier lenders.
Help arrange an estimate of your home’s value There are some online tools and resources for us to gain a rough idea of the value of your property. However the lender may request a formal valuation requiring a professional appraisal.
What you need to do:
Gather your documents
Identification Driver licence, passport or birth certificate.
Proof of income Pay slips, tax returns and bank statements. BAS for self-employed and age of ABN. Rental and any other investment income.
Current loan statements Statements from your existing mortgage.
Other debt statements Credit card statements, personal loan statements, HECS debt etc.
Asset documentation Investment statements, property deeds etc.
During the application process
Complete the application Together we will complete the lender’s application form accurately for you to check and confirm.
Provide supporting documents We will submit your application with all the required documentation promptly.
Property valuation The lender will most likely arrange for a valuation of your property.
Review the loan offer After we have reviewed the loan offer on your behalf, you will be required to carefully read the loan terms and conditions before accepting. We are always available to answer any tricky questions you may want clarified and will help you understand the terms and conditions before signing.
Sign the loan documents Once you’re happy with the loan offer, sign the documents for submission.
Settlement
We coordinate with the relative parties to arrange settlement This is when the new loan is formally transferred to you.
Fees Closing costs will be due at settlement.
Repayments Your new loan repayments will commence as per the agreed schedule.
Monitor your savings Track your progress and ensure the refinance is achieving your financial goals.
If you'd like help with assessing your personal and financial situation, as well as comparing the loans in the market to see if you're truly getting the right deal for you, then call Bob Malpass now on 0431 862 136, email bob@westhomeloans.com.au
1300 180 300
hello@westhomeloans.com.au
