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Refinancing home loan


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#1 ChristalLovesDean

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Posted 09 February 2010 - 09:55 AM

We have had our home loan for 5 years now and since our 9% interest (fixed) is up in April, Im beginning to look at re financing, our current home loan company (was wizard but is now GE) have been hopeless and I dont want a repeat experience.

I have just asked them what the current variable rate is for our loan once it comes out and its at 7.09% which i consider pretty high.

So I need help in how to go about re financing, what companies did u look in to? what questions to ask etc? anything would be helpful as Im clueless!

Another question is when we signed up for this loan we had a 4 yr period that if we broke the loan for any reason we had to pay fees (no matter if the loan was fixed or variable), do all loans have this type of clause? if possible I would love to dodge it as we are not looking at still being in this home for another 4-5 yrs and dont want to have to pay that fee.


TIA! Hope someone understands my rambling!
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#2 melz21

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Posted 09 February 2010 - 12:10 PM

Hi there,

I would suggest finding a mortgage broker in your area. They will generally come to you, even after hours if that's more convenient. They will take a look at your current mortgage, assess your current financial situation/needs and go through the best options with you.

We did this when we got a mortgage for our first home.

You (normally) don't have to pay a broker either because they receive a commission from the bank/financial institution you end up going with.

I hope that helps smile.gif Good luck!
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#3 *Lib**

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Posted 09 February 2010 - 12:14 PM

We were with Wizard and have just been unlocked from a huge rate too! We are looking at refinancing, so we need to get a valuation done, to get things happening. Its all too hard, but I really need to get my butt into gear!
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#4 lilacgirl

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Posted 09 February 2010 - 02:59 PM

We have just had an Aussie homeloans broker out and has gone through our options.

They were extremely helpful and we are refinancing shortly

#5 aChocLover

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Posted 09 February 2010 - 03:49 PM


We used a mortgage broker in the first instance, at the end of the day we went with the same lender who we did all our other banking/finance/insurance with - as they offered a discount (%) if we continued to do this.

QUOTE(ChristalLovesDean @ Feb 9 2010, 09:55 AM) View Post

Another question is when we signed up for this loan we had a 4 yr period that if we broke the loan for any reason we had to pay fees (no matter if the loan was fixed or variable), do all loans have this type of clause? if possible I would love to dodge it as we are not looking at still being in this home for another 4-5 yrs and dont want to have to pay that fee.
TIA! Hope someone understands my rambling!


Regarding getting out of these clauses .. in my experience we had a similar clause and the financial advisor at our bank told us that provided we kept a minimum figure (ours was someting like $1,000) and didn't "close" the account until the term was up, we wouldn't be impacted by the get out clauses. You'll have to look into your contract to see if 1. there is penalty for early pay out, and 2. what are the termination fees (lost interest, %, lump sum etc).


#6 goodgirl

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Posted 09 February 2010 - 04:51 PM

QUOTE(ChristalLovesDean @ Feb 9 2010, 10:55 AM) View Post

Another question is when we signed up for this loan we had a 4 yr period that if we broke the loan for any reason we had to pay fees (no matter if the loan was fixed or variable), do all loans have this type of clause? if possible I would love to dodge it as we are not looking at still being in this home for another 4-5 yrs and dont want to have to pay that fee.
TIA! Hope someone understands my rambling!

I think most banks do have this clause unfortunately. However, when we were looking at how to avoid this penalty, our bank advised us that if you buy another home prior to selling the one you're in and get bridging finance, the bank can often transfer your existing mortgage across to the new home and avoid the penalty that way. Worth asking if they can do that.

I've never looked into the way that Auchocolat mentions - sounds great if you can do it - but I would have thought that upon settlement of a property, you no longer hold that property as security so the mortgage has to be fully paid up. I imagine if you were paying it off early though, those fees could be avoided that way.

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#7 beachgurl

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Posted 09 February 2010 - 06:38 PM

Im currently refinancing my own loans and I'm getting 5.99 pc. As for exit fees, it depends on the lender. Some don't charge an exit fee but have a higher application fee, others only charge around $700 if you pull out in the first few years which is pretty good. Other lenders charge higher exit fees that are a percentage of the total loan amount.

If I were you I'd go with a slightly higher application fee so you are not up for exit fees. If you want more details on these lenders or have any other questions feel free to pm me.

#8 ChristalLovesDean

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Posted 09 March 2010 - 09:14 AM

Does anyone know of anyone willing to refinance more than 90% of the property? we need to refinance approx 93% according to my calculations and everyone that im ringing says they dont lend over 90%...
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#9 beachgurl

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Posted 09 March 2010 - 11:12 AM

I'm just checking with a few people who recently told me they can do 95% refinances. They are with mortgage managers so the loans are with smaller lenders that either do not advertise to the general public directly or don't have shop-fronts. Will PM you if I have any luck with this.

#10 ChristalLovesDean

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Posted 09 March 2010 - 03:17 PM

QUOTE(beachgurl @ Mar 9 2010, 12:12 PM) View Post

I'm just checking with a few people who recently told me they can do 95% refinances. They are with mortgage managers so the loans are with smaller lenders that either do not advertise to the general public directly or don't have shop-fronts. Will PM you if I have any luck with this.



Thanks so much for your help!!
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