24.10.26
How to Prepare for a Mortgage Refinance
Author:Himak
How to Prepare for a Mortgage Refinance: A Practical Checklist
Refinancing can lower your rate, release equity or simplify your loans, but it goes more smoothly when you are prepared. Here is what to gather and the numbers to know before you speak with your lender or mortgage broker.
Why People Refinance
- To get a lower interest rate
- To access equity for renovations or another purchase
- To switch between fixed and variable rates
- To consolidate debts
- To change loan features such as offset accounts
Know Your Numbers
- Current loan balance and interest rate for each loan
- Estimated property value
- Your LVR (loan ÷ value)
- Usable equity, often calculated as 80% of value minus the loan
- Fixed-rate expiry dates and any break costs
- Rental income and expenses for investment properties
Documents to Gather
- Recent loan statements
- Payslips or business financials
- Tax returns and notices of assessment
- Bank statements
- Rental statements and leases for investment properties
- Council rates notices and insurance policies
Questions to Ask
- What is the comparison rate, not just the advertised rate?
- Are there application, valuation, discharge or break fees?
- Will a new valuation change my LVR?
- Will I need Lenders Mortgage Insurance?
- How will this affect my overall portfolio cash flow?
Review Your Whole Portfolio First
If you own more than one property, a refinance on one loan can affect your borrowing capacity and equity across the portfolio. Reviewing everything together helps you and your broker make better-informed decisions.
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Start your 30-day free trialFrequently Asked Questions
How often should I review my home loan?
Many people review their loans every one to two years, or when a fixed rate is about to end.
Does refinancing affect my credit score?
A new application usually leads to a credit enquiry. A few enquiries spread out over time are generally less concerning than many in a short period.
Can I refinance to access equity?
Often, yes, subject to the lender’s valuation, your LVR and your ability to service the loan.
This article is general information only and is not financial, tax or legal advice. Consider speaking with a licensed professional about your circumstances.
