Home Loan Refinancing

Home Loan Refinance FAQs

• How Does Home Loan Refinance Work?

  Home loan refinancing involves replacing your current mortgage with a new one, often with a different lender. The new loan pays off your existing balance, and you start making repayments under the new terms, which may include a lower interest rate, reduced monthly repayments, or access to additional features.

• Is refinancing possible if I’m already in arrears on my mortgage?

  Yes, refinancing is often possible even if you’re behind on your mortgage. At Rapid Finance, we specialise in helping borrowers in this situation by finding refinancing solutions that can consolidate other debts into one manageable payment. While the loan term may be extended, this can help reduce your monthly repayments and ease financial stress. If you're struggling with mortgage arrears, we could help.

• How Can Rapid Finance Help Me with Home Loan Refinancing?

  At Rapid Finance, we specialise in helping borrowers find home loan refinancing solutions tailored to their unique financial situation. Whether you're looking for a lower interest rate, consolidating debt, accessing your home equity, or switching to a more flexible loan, our team could guide you through the process to find the right loan with terms that suit you.

  Here’s how we could help:

  • Access to a Panel of Lenders – We work with a range of specialist lenders, to help find a refinancing solution that fits your needs, even if you have bad credit.
  • Personalised Loan Assessments – We assess your financial situation, loan goals, and eligibility to find refinancing options that offer better rates and terms.
  • Bad Credit Solutions – If you have a low credit score or past financial difficulties, we could connect you with flexible lenders who consider more than just your credit history.
  • Debt Consolidation Assistance – We help borrowers refinance to consolidate multiple debts into one manageable home loan, potentially reducing interest costs and simplifying repayments.
  • Equity Release Options – Need funds for renovations, investments, or personal expenses? We help you access the equity in your home through refinancing.
  • Support Through the Entire Process – From comparing loan options to handling paperwork and negotiations with lenders, our team provides end-to-end support to make refinancing as smooth as possible.
  • Cost and Savings Analysis – We help you weigh up the costs of refinancing against potential savings to determine whether refinancing is the right choice for you.

  
  At Rapid Finance, our goal is to help you secure a loan that works for your financial needs and future. Whether you’re looking to reduce repayments, restructure your loan, or improve your financial stability, we’re here to help.

• What Are the Benefits of Refinancing a Home Loan?

  Refinancing could help you secure a lower interest rate, reduce monthly repayments, or pay off your loan sooner. It could also allow you to consolidate debt, access home equity for renovations or investments, and switch to a loan with better features like an offset account or redraw facility.

  You might also refinance to change from a fixed to a variable rate (or vice versa) or to reduce fees and charges. If your financial situation has improved, refinancing could help you qualify for a better loan with more flexibility.

  At Rapid Finance, we work with a panel of specialist lenders to help you find refinancing options tailored to your needs, whether you're looking to save money, restructure your loan, or consolidate debts.

• Can I Refinance If I Have Bad Credit?

  Yes, refinancing is still possible with bad credit. Some lenders specialise in bad credit home loans and consider factors beyond your credit score. However, interest rates may be higher, and eligibility criteria may vary.

  At Rapid Finance, we work with a panel of specialist lenders who offer refinancing solutions for borrowers with bad credit. Our team assesses your unique situation, helping you find a lender that considers more than just your credit score. Whether you're looking to lower your repayments, consolidate debt, or improve your financial position, we could help you explore refinancing options that suit your needs.

• How Much Could I Save by Refinancing My Home Loan?

  The savings depend on factors such as your current interest rate, the new rate, loan term, and any fees involved. A lower interest rate could potentially reduce monthly repayments and save you thousands over the life of the loan.

  Example Home Loan:

  Sarah took out a home loan of $400,000 five years ago with an interest rate of 8.5% p.a. due to her bad credit history. Her monthly repayments were $3,078 on a 25-year loan term. Over the years, she consistently made her repayments, improved her credit score, and built more equity in her home.

  Now, she qualifies for a lower interest rate of 5.5% p.a. by refinancing. Her new monthly repayments drop to $2,452, saving her $626 per month or $37,560 over the next five years. If she keeps the new loan for the remaining term, her total savings could exceed $100,000.

  At Rapid Finance, we specialise in helping borrowers refinance, even if they started their mortgage with bad credit. If your credit has improved, we could help you explore better loan options with lower interest rates.

  Disclaimer: This is a hypothetical example for illustrative purposes only. Actual savings, interest rates, and loan eligibility will vary based on individual circumstances.

• What Costs Are Involved in Refinancing?

  Costs may include discharge fees, break costs for fixed loans, application fees, valuation fees, legal and settlement fees, ongoing loan fees, and possibly lenders mortgage insurance (LMI) if your equity is below 20%. All factors and your financial goals need to be considered before moving your home loan.

• How Do I Know If Refinancing Is the Right Choice for Me?

  Consider refinancing if you can secure a lower rate, reduce your repayments, consolidate debt, access equity, or improve loan features. Weigh up the costs and potential savings before making a decision.

• What’s the Difference Between Refinancing and Loan Restructuring?

  Refinancing involves switching to a new home loan, often with a different lender, while loan restructuring adjusts the terms of your existing home loan with your current lender.

• Why would someone choose restructuring over refinancing?

  Loan restructuring may be a better option than refinancing in certain situations, particularly when a borrower wants to modify their existing home loan without switching lenders. Here are some reasons why someone might choose restructuring over refinancing:

  • Avoiding Refinancing Costs – Refinancing can involve fees such as discharge fees, application fees, valuation costs, and potentially lenders mortgage insurance (LMI). Loan restructuring may allow changes to the loan with minimal or no extra fees.

  • Keeping the Same Lender – If a borrower is happy with their current lender’s service but needs better loan terms, restructuring allows them to modify their existing loan rather than go through the hassle of switching to a new lender.

  • Faster and Easier Process – Loan restructuring typically involves fewer steps and less paperwork compared to refinancing, making it a quicker option for those who need immediate financial relief.

  • Adjusting Loan Features – Borrowers may choose to restructure their loan to access features such as an offset account, redraw facility, or different repayment structure (e.g., switching from principal and interest to interest-only payments).

  • Avoiding Credit Checks – Refinancing requires a new loan application, which involves a credit check that could impact a borrower’s credit score. Restructuring an existing loan usually does not require a new credit assessment.

  • Financial Hardship Assistance – If a borrower is struggling to meet repayments, restructuring may allow them to extend the loan term, reduce monthly repayments, or access a temporary hardship arrangement with their lender.

  At Rapid Finance, we help borrowers explore both loan restructuring and refinancing options to determine the best solution for their financial situation. Whether you need to reduce your repayments, access better loan features, or consolidate debt, our team can guide you through the process and find the right option for you

• Is It Possible to Refinance a Home Loan to Access Equity?

  Yes, refinancing could allow you to access equity built up in your home. This can be used for renovations, investments, or other financial needs.

• How Can Refinancing Help with Debt Consolidation?

  Refinancing can combine multiple debts, such as credit cards or personal loans, into a single mortgage with a lower interest rate, simplifying repayments and potentially reducing costs.

• Can I Refinance from a Fixed-Rate to a Variable-Rate Loan (or Vice Versa)?

  Yes, it is possible to switch loan types when refinancing. Fixed rates provide stability, while variable rates offer flexibility. Consider break costs if switching from a fixed loan before the term ends.

• Are There Government Fees or Stamp Duty Costs When Refinancing?

  Yes, state governments charge mortgage registration fees, of around $200. However, refinancing generally doesn’t attract stamp duty unless ownership changes.