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Refinance and debt consolidation home loan

How do you know if it’s time to refinance or consolidate your loans? Let me ask you another question. When is it a good time to put money back in your pocket? EVERY YEAR you should take a home loan health check to find out if the loan you have is still saving you money. A lot can happen in a year, life circumstances can change, you may have taken on extra debts and rates may have moved substantially so you owe it to yourself and your cash flow to check your home loan and debt situation every year.

Let me give you an example
Many clients who come to Assured Home Loans are currently in this type of situation;

Loan Type	Loan Amount	Current Interest Rate	Approx. Monthly Repayment
Home Loan	$175,000	7%	$1164
Car Loan	$14,000	11%	$305
Personal Loan	$6,000	13%	$136
Credit Cards	$6,000	17%	$180
Store Accounts or expired interest free	$2,500	21%	$100
Total Debt	$203,500	Total Repayments	$1885

If all of these loans were to be consolidated and refinanced to a lower rate the repayments could be reduced down to around $1,230 freeing up a massive $655 per month.

Please note; this loan would now be set over a term of 30 years, however for people who are struggling with repayments this could be a great option.

Alternatively you could also consolidate and refinance to a better rate and keep your payments as they were and your total debt would be paid off in full in just 13 years. That’s right, house mortgage and every other debt paid off.*

*Please note; these calculations may vary depending on interest rates charged and should be used an example only.

Ready to free up your Cash Flow?
Make an enquiry or apply online to get started and start saving!

What reasons have other people like you, refinanced for?
Every client at Assured is unique, just like you. The reasons to refinance or consolidate are unique also. You may be looking to;

Invest in a new car to keep the family safe on the road
Install a new pool so you can holiday at home
Gain some extra funds to secure your children’s education
Put in that new bathroom you’ve always been talking about
Pay off your home quicker and gain financial freedom
Build an extension for the new family addition or just gain some extra space.
Increase your cash flow to give you a little breathing space
Landscape your yard and create a great place to relax and play
Reduce financial stress
Use the savings you create each month to put away for a rainy day.
Change to a home loan that has different term which work better for you eg. No monthly account keep or redraw fees. 100% offset facility etc.
Take a well overdue holiday
Increase the term of your mortgage so that you can reduce the monthly repayments and free up cash flow
Getting cash out of the equity in your home loan for whatever reason you feel is needed.
Roll all your payments into one so you have one convenient payment and interest rate.

How does refinancing work?
Simply trade in your old mortgage for a new one! Applying to refinance and/or consolidate your home loan is very much the same process as applying for your initial mortgage. To help jog your memory, an outline of the process is;

Contact your home loan consultant and explain what your needs are.
Your consultant will ask you some quick questions about your current financial circumstances such as your current income, current debts etc to get an idea of your position as it stands right now.
Once this is determined your mortgage broker will research what home loan options are available to you, which home loan products best suit your current situation and of course which mortgage is going to help save you the most money.
Once it is confirmed over the phone or by e-mail that you are eligible to proceed, a face to face appointment will be arranged at a time and place that suits you to discuss your loan options.
All fees involved in refinancing and/or consolidating your home loan will be explained to you so that you are making an informed decision about changing your mortgage.
Once you have decided on the best new home loan option for you, your mortgage broker will prepare the loan application, package it will all the information required and submit your loan application to your chosen lender.
Once your loan has been conditionally approved, a valuation on your property will be completed to determine how much your home is worth and therefore how much equity is available to you.
When your valuation is returned the loan is sent to a mortgage insurer for approval.
On receiving this approval from the mortgage insurer, you are now considered to be formally approved and the lender can instruct solicitors to draw up your mortgage documents.
The solicitor will also send instructions to your current home loan lender to let them know you will be discharging your loan. Quite often your lender will contact you to persuade you to stay with them, but stay strong! If that loan is not working for you it’s time to leave it behind (click here to see a quick demo of how to handle your bank!)
Once your mortgage documents have been returned, the solicitors will contact your old home loan lender to book a time to pay out that loan.
Your loan is then booked for settlement. Once settlement of your home loan occurs, your new lender will payout your previous mortgage and any other debts you have nominated to pay out.

What about the costs?
There are certainly costs involved in refinancing, however when refinancing you are often incurring these costs to gain a greater benefit. Common costs incurred may be;

Home Loan application fee
Property Valuation fee
Mortgage Insurance (depending on how much you are borrowing)
Solicitors documents and services fees
Government fees and charges
Stamp duty....
Title insurance
Discharge fee
Penalty payment

Refinancing Calculators

Home Loan calculators can help guide you when deciding to refinance or consolidate your debts. These simple calculators generally require a small amount of information yet offer you some valuable results. This Complete Loan Comparison calculator allows you to compare your old mortgage to your new one.
Feel free to take a look at our full range of home loan calculators.

See what others have to say about refinancing with Assured

“We should have done this years ago! We purchased a new car and refinanced our mortgage with Assured and our repayments are less than they were before. It was like getting a car for free” Lee and Debbie – Hove, SA

So if it’s been over a year since you’ve reviewed your home loan, it’s time to have a home loan health check and see if we can take some cash away from the lenders and put it back in your pocket!