Refinancing Home Loans

We help our clients to achieve more flexibility over the full term of their repayments so they can plan for a bright future.

Your home loan or mortgage is likely to be the biggest cost you face each month — often running to several thousands of dollars for Sydney homeowners [1]. With this in mind, any method you can use to access a lower interest rate and reduce these costs is going to be very attractive indeed.

This is why we offer home loan refinancing services designed to give Sydney homeowners the best possible deal on their mortgage.

    How Does A Home Loan Refinance Work?

    When you refinance a home loan, you are effectively switching your existing home loan to a new one. For instance, if you took out a 25-year mortgage and have been paying this off for 10 years, you will have 15 years left on the mortgage. With refinancing, you could begin the payment term again, paying off the remaining balance across a new 25 or 30-year term. This means your monthly payments will be reduced.

    You may also be able to secure a lower interest rate on your mortgage. Interest rates will be calculated based on current rates, the balance left to pay on your home loan, and on the length of the renegotiated mortgage term.

    This is a very simple example, but it does illustrate why so many customers come to us for home loan refinancing services. When monthly home loan repayments are becoming a burden, refinancing the loan can be a great option. Of course, specific criteria apply, and one of our advisors can help you better understand your situation.

    When to Refinance Your Home Loan

    There are a number of different scenarios in which refinancing a home loan or mortgage can provide an advantage. Let's take a look at a few of the most common.

    A fixed rate mortgage often seems like a great idea. This type of home loan will enable you to lock in your interest rate, giving you a clear picture of how much principal and interest you will need to pay over the fixed term of the loan. But what happens when interest rates start to decline?

    For holders of a fixed rate home loan, nothing happens. You have already set your interest rate, and this will remain the same across the fixed repayment term. In this case, the only way to access a reduced interest rate will be to refinance the mortgage. We will work with you to evaluate the refinancing costs and interest savings, prior to proceeding with your new loan application.

    Even when interest rates are taken out of the equation, you may be able to access reduced repayments when you opt for home refinance. Roughly speaking, your repayments are based upon the remaining principal, plus interest, of the loan, divided by the length of the loan term. Refinancing can help you to access a new, extended loan term, reducing your monthly payments in the process.

    While this will leave you paying off your home loan for longer, it may provide you with additional flexibility, thanks to reduced payments. Bear in mind that you will be building up less equity each month with these reduced payments and it is likely to cost more in interest over the full term.

    If you are able to pay more than the minimum amount on your home loan, you can withdraw this additional equity to a redraw account. This redraw facility gives you the opportunity to access some of the equity in your home. You can also use an offset account or transaction account to tap into a portion of this resource. To access more of your equity, however, you may need to refinance.

    You may be able to begin your loan term again from scratch, paying off the full amount of the purchase value with a renegotiated interest rate and repayment term. This would allow you to access the capital you have already built up as home equity. With the right strategy, this can be a lucrative move, as you will be able to improve your home to increase its resale value or purchase other valuable assets. Our advisors can help you gain a better understanding of your objectives and your financial situation.

    It is likely that you have other monthly payments on top of your home loan — a car loan or personal loan, for example, or a credit card debt. It may be simpler and more cost-effective to consolidate this credit into a more manageable payment.

    In some cases, you may be able to achieve this via refinancing. We will need to examine your case carefully, factoring in the break costs associated with terminating your existing home loan and examining comparison rates before restructuring your payments. Our advisors can assist you as you weigh up this option.

    Why Choose Sydney Brokers When Refinancing Your Home Loan?

    Refinancing can be a shrewd move, but you will need expert advice to make sure this is the case. Product disclosure statements, lenders mortgage insurance, and other factors can muddy the waters, contributing to a confusing situation.

    At Sydney Brokers, we are well positioned to offer this advice. Our team is Australian credit licensed, and we work with 21 different lenders providing 2,000 different loan options between them. This means we can help you navigate the process and find the path that best suits you.

    You’ll benefit from:

    • Our expertise and close personal service
    • A streamlined route through the application process
    • A warm and friendly team of industry-leading advisors
    • Solutions that match your personal situation and needs
    • Insider knowledge of a complex market

    Don't stress yourself out worrying about whether or not refinancing is right for you.

    Reach out to our team and let’s get started. We’ll be with you every step of the way.

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