Refinancing Frequently Asked Questions
Simply fill in the enquiry form on the right for a FREE ASSESSMENT. You are absolutely under no obligation to accept offers that are presented to you by our expert staff. It’s confidential and there is NO CREDIT CHECK.
If you have a question about refinancing, debt consolidation or home loans you’ll find your answer here.
What is refinancing?
To refinance means to change your current home loan to a new and improved home loan which better suits your current situation. It’s worthwhile making it an annual habit to check if there’s a better home loan available for you.
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How does refinancing work?
Refinancing is when you take out a new home loan that is better suited to your needs, and use some or all of the funds to pay out your existing loan. The new home loan often comes from a different lender to your current home loan. If you move to a new lender, they will take care of paying out your existing home loan.
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What are the reasons people refinance?
Some reasons to refinance a home loan can include:
- Renovating your home, or other home improvements such as the addition of a pool.
- Paying off your high interest rate debts, such as credit cards by consolidating them into your home loan which means you’ll be paying the debt off at a lower rate.
- Getting a lower interest rate than you currently have, which ultimately will save you money
- Using the equity in your home to gain access to cash for a variety of reasons, such as purchasing a car, taking a holiday, or perhaps paying for a wedding.
- You want to switch from a variable rate to a fixed rate, perhaps because you can want to reduce the risk of higher repayments in the future.
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Should I refinance with interest rate rises?
When the Reserve Bank of Australia (RBA) raises interest rates, banks and other lenders usually follow suit which increases your mortgage repayments. Refinancing your home loan from a variable to a fixed rate can provide you certainty with your repayments.
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What types of home loan solutions are available & how do I choose which one is right for me?
We offer a full range of loans that can me tailored to meet your specific needs. You can even combine different options (such as refinancing and debt consolidation) to suit your requirements. To learn about your refinancing and loan options, simply fill in an enquiry form to your right so that one of our friendly consultants can contact you to take you through your savings options.
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What is the ‘no frills’ home loan solution from Australian Lending Centre?
Australian Lending Centre’s standard home loan is a basic home loan that offers a simple and straight forward approach while offering great features such as:
- Low ongoing variable interest rate
- Make additional repayments without penalty
- Ability to redraw funds
- Flexibility to split the loan
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I’m concerned about rate movements, what can I do?
Feel more comfortable knowing exactly what your repayments are with a fixed rate loan. A fixed rate will protect you against the rising of interest rates as well as providing you with great features that include:
- Choice of one to ten year terms
- Principal and interest or interest only repayment options
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Which loan is suitable if I can’t provide complete evidence of income?
If you’re self-employed, a low doc loan is most likely the solution to your refinancing needs. So long as you have a proven regular income and real estate property to use as security, we may be able to assist you with a low doc loan.
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What if I’ve found a home I want to buy, but haven’t yet sold my existing home?
A bridging loan allows you to purchase a new property before you sell your current home, repayments are interest only. When you sell your current property, you simply pay out your bridging loan and continue on with your new loan.
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What solution is available if I want to purchase an investment property?
We have multiple options available to those looking to purchase an investment property. For example you can refinance your existing home loan to unlock the equity, however it’s best to speak with one of our loan consultants to find out your best option.
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Can I split home loans?
Our home loans have inbuilt features that allow you to split your home loan in multiple ways. We pride ourselves on having the ability to tailor a loan to suit your needs perfectly.
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