The steps to refinancing your home loan
Refinancing your home loan is a fairly simple process, it just requires the same kind of research and arithmetic you used when securing your home loan to begin with. Once you have ascertained that the rate you are paying is too much in the current market, or that the features of your home loan are not suitable for your lifestyle, or that you just feel it's a good time to look at your options: start the process.
How to shop around for a home loanThe comparison sites mentioned earlier – Finder, Canstar, Rate City and so on – are good places to get easy-to-access comparisons on the kinds of refinance loans available according to your position. IMB's products often feature in the top loans on offer. And, unlike many online-only lenders, IMB has been delivering personal service in our growing branch network for over 140 years. We have highly skilled Lending Specialists in our branches, and Mobile Lenders who can visit you at a time and a place that is convenient to you. No matter which option you choose they will spend the time with you to ensure you understand the process and the potential cost savings available to you.
What is the best home loan for refinancing?There is no one-size-fits-all answer here. But, as we have covered in why refinance a home loan and when to refinance a home loan of IMB's Guide To Refinancing, here are the key questions to ask yourself:
Should I choose a fixed rate or a variable rate loan, or both?If you are a refinancing then, by definition, you already have a home loan. You will have had experience with either a variable loan, or a fixed loan or a split loan in some way. So, it will depend entirely on your circumstances and desires whether you prefer your new loan to be a: Variable Rate Home Loan
Where the interest rate moves according to various economic factors, including movements in the cash rate as set by the Reserve Bank of Australia and other market forces. Variable rate loan products generally have more flexibility like extra repayments, and options like offset accounts, redraw facilities and so on. Compare refinance home loans. Fixed Rate Home Loan
A loan where the interest is set for an agreed period of time, usually 1-5 years. Fixed rates offer repayment certainty for the term of the loan. If interest rates rise, you will experience advantage. If they fall, you do not benefit. Split Home Loan As the name suggests, you can set a portion of the loan amount to a variable loan product and the other portion to a fixed product. This offers a combination of certainty with some fixed repayments and the features and flexibility available to variable rate loans.
Speak with your bankOnce you have a good idea of what is available, speak to your bank about your home loan rate. Keeping your business is important to any financial institution because garnering new business is a more expensive process than retaining your business. A simple conversation can improve your variable home loan rate markedly, or increase flexibility and added features like fee-free redraw and offset account options. Of course, often banks won’t allow fee-free breaking of fixed loans because, as detailed above, there are large costs incurred. Already an IMB home loan customer? Contact us for a Home Loan Health Check so that we can give you peace of mind that your home loan is working for you. Fill out the online enquiry form or call the team on 133 462.
How to apply for a new home loanNow that you have decided on a lender and a loan that works best for you and your goals, it’s time to apply. This process is like applying for any home loan. You will need to supply personal identification, financial information and property information so that the lender can accurately value your property. The difference here is that you’ll need to supply details of your current home loan, so that the lender can see your repayment history and how much you have outstanding.
How much does refinancing cost?Exit fees As mentioned in why refinance your home loan and when to refinance a home loan, onerous exit fees were abolished in 2011 to stimulate the kind of competition we enjoy today. However, if you settled your home loan before June 2011 you may be required to pay an exit fee when paying out your loan before the end of the loan term. Speak with your bank about your situation, or IMB can investigate it with you. There is still often a “discharge fee” however. These can cost anywhere between $0 and $1000 but average about $300. Of course, if your home loan interest rate is fixed and you still have time left on the fixed term of the loan, you may have to pay "break costs". These can be significant depending on your loan and how long you have left in the fixed period. Application fees When applying for a new loan there may be an application or settlement fee that is payable to establish the loan. Consider these potential fees and compare them to the possible long-term savings gained by switching mortgages. It is important that you are aware of the fees when both leaving your old lender and moving to your new one. Factor these into your calculations if you do decide to refinance. Finally, a registration fee for the new mortgage and a de-registration fee on the existing mortgage will also have to be paid.
How to exit your home loanOnce your loan has been approved by your new lender – let’s say IMB Bank – we will contact your old lender and organise the discharge paperwork. We will take care of it from there. The process of settlement should only take a couple of weeks. Then, you can enjoy your new repayments, flexibility, equity – whatever you’ve aimed for. At IMB, we can help you understand the terrain so you can make the refinance decisions that’s best for you. Have one of our lending specialists call you here, or call the team on 133 462.
Important Information:
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How to refinance your home loan in 4 simple steps
Understand refinancing
Refinancing your home loan can be confusing and daunting. Check out our refinance guides to take you a step closer to saving time and money off your loan.
See how much you can save
Use our simple refinance calculator to see how much time and money you could save by refinancing.
Apply for a home loan
Book a time to speak with an IMB Bank home loan expert or apply for a home loan online.
We'll do the hard work
Once you’ve decided on the loan that will best suit you, we will do the hard work to get your home loan out of your life sooner.
How we can help you |
140 years of giving home loans
We have been helping people buy homes and achieve their financial goals since 1880.
We can come to you
Our mobile lenders are on standby ready to come to you to discuss how we can help you switch to a better home loan. |
Dedicated local customer service
As a mutual bank, our members are our shareholders, and we strive to deliver them the best service, value and innovations.
Available anywhere in Australia
Wherever you are in Australia, our team of home loan specialists can help you refinance to a better home loan. |
“I’ve been a member with IMB since my first job at Coles and have always loved the personal service,” says Megan Pracy. As newlyweds, she and husband Matthew (along with lots of help from daughter Valetta) worked with IMB to save their deposit, navigate their entitlements and secure their loan. “When an opportunity to buy our first home, I called Lauren Oakes.” Then Camden Branch Manager (and now Menai Branch Manager), Lauren had helped the couple’s preparation over the previous two years: setting up term deposits, helping them formulate a budget program to save their deposit, and steering them through NSW First Homebuyer’s Grant, Stamp Duty exemptions and mortgage insurance. It worked. When the contacts were produced, Megan and Matthew were ready. “The team at IMB have always been incredibly supportive,” says Megan. “We wouldn’t be in our home without them.” |
"We wouldn’t be in our home without IMB" Megan and Matthew from Camden |
IMB by numbers |
1880 The year we were established |
200,000 Members |
$10 million Given to over 700 community projects |
Talk to a home loan expert |
They will answer any of your questions and assess your situation. This can be at your local branch, on the phone or we can come to you. |
Information current as at date of appearance and subject to change. Lending criteria, terms and conditions, fees and charges apply. Minimum total loan exposure $75,000. Eligibility criteria must be met to apply online. Split loan options not available in online applications. You should consider the relevant Terms and Conditions or Product Disclosure Statement (PDS) before deciding whether to acquire any IMB products or facilities. Target Market Determinations available here. |
Why choose us?
Established in 1880, IMB Bank is one of the most enduring financial institutions in the country, helping people achieve their financial goals for over 140 years. Our members can access a fully featured range of services: home and personal lending, savings and transaction accounts, term deposits, business banking, and more.
Our renowned personal service is backed by innovation, providing convenient, secure digital banking options where and when you want it. IMB also has a growing retail branch network throughout NSW and Victoria, for when you need to speak to someone in person, and a team of professionals at our locally based contact centre. We have a lending specialist in every branch and a team of mobile lending specialists who will come to you.
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