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Home loans
Buying your next home or an investment property in Melbourne. We compare lenders and structure the loan around your plans.
Find out more : Home loansD-06
Refinancing
Refinancing Your Home Loan
Plain English. Properly structured.
Refinancing can lower your repayments, free up equity or tidy up a loan structure that no longer fits. It can also cost money for no real gain. We help Melbourne homeowners and investors work out which it is, before anyone fills in a form.
01 — What it is
Refinancing, in plain English.
Refinancing means replacing your current loan with a new one, either with a different lender or a different product with your existing lender. People refinance for lots of reasons: a better rate, features like an offset account, consolidating debts, releasing equity for renovations or an investment, or ending a fixed period and wanting to reassess.
The decision isn't just about the rate. There are discharge fees from your current lender, possible break costs if you're on a fixed rate, application and valuation fees with the new one, and sometimes lenders mortgage insurance again if your equity has dropped. Against that you weigh the savings over the time you actually expect to keep the loan.
Sometimes the best result is a conversation with your current lender. If they will sharpen their rate to keep you, you avoid the paperwork. We can tell you what's realistic so you have a firmer footing when you ask.
We work with homeowners and investors across Melbourne's south-east, from Mount Waverley to Bentleigh. Our job is to show you the numbers honestly, and if a move makes sense, to run it smoothly so there's no gap or overlap in your repayments.
02 — Who it suits
Is this the right fit?
- [A]Homeowners who have not reviewed their loan in a few years
- [B]Borrowers coming off a fixed rate period
- [C]Owners wanting to release equity for a renovation or investment
- [D]People wanting to consolidate higher-interest debts
- [E]Investors who want to separate personal and investment lending
- [F]Anyone whose circumstances have changed since they first borrowed
03 — How it works with us
From first chat to settlement.
- 01Stage 1 of 4Review what you have
Review what you have
Send us your latest loan statement. We look at your rate, fees, features and structure, and ask what you want the loan to do from here.
- 02Stage 2 of 4Run the numbers
Run the numbers
We compare options and show you the real cost of switching, including exit costs, against what you would save. If staying put is better, we say so.
- 03Stage 3 of 4Apply and value
Apply and value
If you go ahead, we prepare the application, order the valuation and manage questions from the new lender.
- 04Stage 4 of 4Settle the switch
Settle the switch
The new lender pays out your old loan. We coordinate dates, direct debits and offset accounts so the changeover is clean.
04 — What lenders look at
What you'll need.
| Ref | Item | Why it matters |
|---|---|---|
| M-01 | Current loan statements | Usually the last six months, showing repayments are up to date. |
| M-02 | Photo ID | For every borrower on the new loan. |
| M-03 | Income evidence | Recent payslips, or tax returns if you are self-employed. |
| M-04 | Rates notice | Helps confirm property details and ownership. |
| M-05 | Other debts | Statements for any loans or cards, especially if consolidating. |
| M-06 | Purpose of funds | If releasing equity, a quote or plan for what the money is for. |
05 — Common mistakes
What to avoid.
Check 01
Ignoring break costs
Check 02
Resetting the term without noticing
Check 03
Consolidating then re-borrowing
Check 04
Refinancing too often
Q-01How do I know if refinancing will save me money?
Compare the total cost of your current loan against the new one over the time you expect to keep it, including all switching costs. We do this comparison for you as part of the review.
Q-02Will refinancing affect my credit score?
Each application creates a credit enquiry. One well-planned refinance is generally fine. Several in a short time can count against you.
Q-03Can I refinance if my property value has dropped?
Possibly. If your equity is lower, lenders mortgage insurance may apply or options may be limited. We will check what is realistic before you apply.
Q-04Can I refinance to pay for a renovation?
Yes, if you have enough equity and can service the larger loan. For major works, a construction loan may be more suitable. We will help you choose.
Q-05Should I ask my current lender for a better rate first?
Often worth doing. Some lenders will reprice to keep you. Knowing what other lenders offer gives you a stronger position in that conversation.
Q-06How long does a refinance take?
It depends on the lenders involved and how quickly documents come in. We give you a realistic timeline once we know who you are moving to.
07 — Related
Related loans.
D-02
Construction loans
Building a new home, a knock-down rebuild or a major renovation. Loans that pay your builder in stages as the work goes up.
Find out more : Construction loansD-07
Self-employed & low doc
Home loans for business owners, contractors and sole traders, including low doc options when tax returns lag behind.
Find out more : Self-employed & low docFrom the blog
Construction5 min read
Knock-Down Rebuild Finance: What You Need to Know Before You Start
Planning to demolish and rebuild on your block? Here's how knock-down rebuild finance works, what lenders look for, and how to budget for the costs people often miss.
Self-Employed5 min read
Self-Employed Home Loans: How to Get Approved with Low Doc
Self-employed and finding it hard to get a home loan? Here's how lenders assess business income, when low doc loans make sense, and how to prepare a stronger application.
Refinancing5 min read
When Does Refinancing Actually Save You Money?
Refinancing can save you thousands, but not always. Here's how to work out whether switching your home loan makes sense, the costs to consider, and the questions to ask.
08 — Enquire
Tell us what you're planning.
No cost and no obligation. We'll help you understand your options and what the next step looks like.
Prefer email? Write to help@ridgefinance.au.