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Important Refinancing Facts You Should Know

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Refinancing means paying out the current home loan by taking a new loan with the existing lender or a new lender. We have noticed a huge surge in refinance activity, especially in recent months. Australian homeowners are incentivised to restructure finances by the current historic low mortgage interest rates. However, the decision to refinance your existing home loan should be made according to your financial circumstances. There are a few important refinancing facts you should know before applying for a home refinance.

Know the costs of refinancing

There are some costs and fees involved in refinancing, which usually costs between 3% and 6% of the total loan amount. How much these costs and charges app up to can determine whether it makes financial sense to refinance in the first place, and that’s why you should aware of all the upfront costs. First of all, if you are still on a fixed-rate term, you will need to pay break costs and application fees (it ranges from $0 to $1,000). Furthermore, there are property valuation fees, it can be waived sometimes and discharge fees.

Besides, you will need to pay ongoing loyalty package fees for the account features such as redraw or offset accounts. Don’t forget there is also mortgage insurance (LMI) needs to pay if your loan to value ratio is above 80%, which can be rolled into your new loan. It’s always recommended to negotiate as some refinancing fees can be waived by the lender.

Know exactly what you want

When it comes to refinancing, you should know what do you want to get from this refinancing. It’s important to establish your goals before refinancing in order to determine if refinancing is a financially wise decision to make. You need to figure out whether your goal is to reduce the monthly repayments or you want to pay less interest over the whole loan term, or your goal is to pay off the loan as soon as possible. With the clear mind of what goal you’d like to achieve, you can seek help from a financial expert in order to choose the right lender and loan product.

Understand it takes longer to refinance now

You should keep in mind that nowadays banks take longer to refinance your loan, it happens to both major bank and as well as those smaller lenders. We recommend people who are considering refinancing to be as patient as possible. As a matter of fact, the big four banks took significantly longer to refinance loans with the average time of 54 days, while 36 days with smaller lenders (Lendi figures).

Big 4 banks v.s. Non-big 4 banks

According to the Australian Mortgage Snapshot Study, 83% of Australians choose their home loan provider based on interest rates. Due to the fierce competition in the current home loan market, lenders have all revised their offers with competitive rates. Generally speaking, those smaller have continued to demonstrate lower interest rates. However, the big 4 banks can provide more comprehensive and convenient services. So, we recommended you to discuss your needs and wants with a financial specialist. They will be able to help you determine what is the best choice for you.

Understand how much you can save

For example: On a loan of $500,000 this represents an annual saving of more than $2,000. Feel free to try our refinance calculator to find out how much you can save.

You can also try our smart Health check tool to see if it’s your current loan is still competitive in the market. 

The main purpose of refinancing is to save money in the long term, especially in the current economic climate. It’s recommended to go through this “Important refinancing facts you should know”.

The information in this post is general information. We recommend you to always seek professional advice or assistance before making any financial decisions.

 

Disclaimer:

The information presented by staff or employees of Credit Hub and its associated companies is provided for general informational purposes only. We do not guarantee the accuracy, completeness, or timeliness of the data or views presented. Audience members should conduct their own research and verify any information before relying on it. Credit Hub and its associated companies are not liable for any errors or omissions, or for any actions taken based on the information presented.

Mortgage Broker in Point Cook

Credit Hub Australia
About the role

Join our dynamic team at Credit Hub Australia as a Finance/Mortgage Broker in our conveniently located Point Cook office, close to the freeway and train station, with free parking available.

In this role, you will be responsible for providing personalised mortgage solutions to our valued clients and also managing your colleagues by co-ordinating the allocation of files and general day to day running of the broker team. With a focus on delivering exceptional customer service, you will guide clients through the entire mortgage process, from initial application to final approval.

“Position is for Mortgage broker on commission/contract basis.”

What you'll be doing
  • You will develop and expand network with our help.
  • Sales, cold calling, and networking come naturally to you. You thrive on engaging with prospective clients to understand their unique financial needs and goals.

  • You will act on leads and existing database as provided and generate sales and ongoing relations.

  • Actively participate in team meetings and contribute to the overall success of the business

What we're looking for
  • You are an existing broker with proven experience in Mortgage Broking or lending abilities, or in a similar financial services role looking to take your career further with a successful Mortgage house.

  • In-depth knowledge of the Australian mortgage market, including products, policies, and regulatory requirements.

  • Excellent communication and interpersonal skills, with the ability to build lasting relationships and earn client trust.

  • A strong commitment to delivering outstanding customer service and consistently exceeding client expectations.

  • Self-motivated and capable of working independently, while also thriving in a collaborative team environment.

  • Relevant industry qualifications, such as a Certificate IV in Finance and Mortgage Broking.

  • Ability to manage multiple tasks, stay organized, and work reliably without supervision.

  • A results-driven mindset with a strong sales focus, coupled with exceptional work ethic, time management, and multitasking abilities.

What we offer

At Credit Hub Australia, we are committed to providing our team with a supportive and rewarding work environment. Some of the key benefits of joining our team include:

  • Competitive remuneration and performance-based bonuses
  • Ongoing training and professional development opportunities
  • Flexible work arrangements and a positive work-life balance
About us

Credit Hub Australia is a leading provider of mortgage and finance solutions, with a strong presence in the Point Cook in the Western Suburb of Melbourne and surrounding areas. Our mission is to empower our clients to achieve their financial goals by delivering personalised, expert advice and exceptional customer service. We are a dynamic and growing team, driven by a passion for helping our clients and making a positive impact on our local community. We are with Finsure as an agrregator Group. 

If you’re ready to take the next step in your career as a Mortgage Broker, apply now to join our team at Credit Hub Australia.

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