Refinance Mortgage Broker

How mortgage brokers can help your drive a better deal through refinancing
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, updated on August 8th, 2023       

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After finding what was the right home loan for you, several years later your circumstances or preferences might change, leading you to want to refinance your mortgage.

If you find yourself facing the process of refinancing your loan, seeking the assistance of a mortgage broker can be a worthwhile undertaking.

In this article, you can find out how mortgage brokers can make the ins and outs of the refinancing process simpler, and how you should best compare mortgage brokers.

How can I refinance with a mortgage broker?

The process of refinancing with a mortgage broker is relatively straightforward. Once you have made the decision to refinance your home loan, your next step will be contacting a local mortgage broker and booking an appointment. Savvy can assist in connecting you with local brokers in your area once you have sent your details through.

Before beginning the refinancing process with your broker, it is a good idea to prepare the necessary documents which you will need to provide should you choose to go ahead with refinancing. The documents you should have on hand include photo IDs, proof of address, financial statements and/or proof of income.

When you meet your broker, your broker will compare your current mortgage with the other options available to you from the lenders which that broker has access to. The majority of brokers will have access to loan products from a large variety of lenders, meaning that they will almost certainly have a refinancing option to suit your needs.

Once your broker helps you to understand the options in front of you, you will be advised as to how you can best put your current equity to use, an application will be made to the appropriate lender, and your broker will manage things from here.

Why is it helpful to use a mortgage broker to refinance my home loan?

Mortgage brokers can provide very useful assistance with refinancing your mortgage as they have access to a large variety of lenders, understand their different loan products deeply, and have the experience necessary to know how to best use finance solutions to address your needs.

Furthermore, most mortgage brokers operate at no expense to the borrower, as they generate their incomes through commissions paid to them by lenders for each successful loan arrangement they facilitate. This means that you can leverage the expertise of a broker with no financial cost, with no obligation to use their recommended products.

In addition to these benefits, it is also worth bearing in mind that because brokers have a best interest duty, they are obliged only to put forward the best options for their clients. This means that they will not be incentivised to promote any particular refinancing service over another based on the extraneous motives of an outside party.

What else should I know about refinancing with a mortgage broker?

Will a mortgage broker help me get a better interest rate when I refinance my home loan?

While a mortgage broker will always attempt to find the best product to suit your needs and will therefore try to find you the best rates possible. If you have not refinanced in the last two years and you are refinancing in a declining interest rate environment then your broker will be able to find you a better interest rate the vast majority of the time.

Can a mortgage broker help me avoid potential fees in the home loan refinancing process?

If avoiding potential fees is a priority for you, then you can communicate this to your mortgage broker and they will do their best to accommodate your request. In this situation a broker can help you compare different options which include the lowest possible fees in order for you to find the refinancing solution which best suits your needs.

What are some of my other options if I decide not to go with a mortgage broker for refinancing my home loan?

If for some reason you are averse to the assistance of mortgage brokers and wish to seek out other options for refinancing your home loan, then online comparison tools such as Savvy’s are a great option. These tools provide an easy-to-understand overview of loans and loan features available to you from a large variety of lenders based on easily changeable filters and inputs specific to your own personal situation. Another option would be to carefully conduct your own due diligence by consulting with a variety of different lenders and banks.

Do I have to follow my mortgage broker's refinance advice?

You are under no obligation whatsoever to follow the advice of your mortgage broker when seeking refinancing advice, however you should bear in mind that mortgage brokers will offer you a great understanding of the financial products available to you, and will generally offer very apt advice which is worth carefully considering before seeking alternative options elsewhere.

Will a mortgage broker help me find a better deal with my current lender?

A mortgage broker can absolutely assist you in trying to find a better deal with your current lender. Even if you feel you are very familiar with your lender, brokers can be helpful in this regard as they have a thorough understanding of the breadth of products and features that may be offered by your lender, as well as a high level of knowledge relating to how your application can have the best chance of success once you have found the right refinancing option.

Can a mortgage broker help me refinance my home loan if I have low home equity?

Yes, mortgage brokers can assist you in this situation. Brokers have access to a large panel of lenders and because of this can locate you a lender that can be more flexible than a bank and can therefore offer you a higher LVR loan.

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