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.