The real cost of refinancing, worked out first
A lower rate only helps if it outweighs what it costs to move. Here is what goes into that sum.
ReadResidential lending
Home loans,
done properly.
For first-time buyers, refinancers and investors building a portfolio.
What we cover
When people
come to us.
- First home purchases
- Deposit planning, guarantor structures where a family member's equity can reduce or remove LMI, and checking which government schemes or concessions you may be eligible for.
- Refinancing
- Moving to a loan that suits you better, releasing equity or rolling other debts in, with the switching costs worked out before you apply.
- Investment property and portfolios
- Structuring loans across several properties so one doesn't cross-secure the others more than it needs to, with the next purchase planned as well as this one.
- Self-employed and alt-doc
- Full-doc with recent tax returns, or alternative documentation such as BAS, an accountant's letter or business bank statements when your returns lag behind current income.
- Rate and structure reviews
- A look at your existing loan against what's available now, including whether your current lender will reprice before you move.
- Upsizing, downsizing and bridging
- Buying before you sell, with bridging finance covering the overlap, or sequencing the sale and purchase so you aren't carrying two loans for longer than necessary.
Our approach
How we
go about it.
We check first
Your borrowing capacity changes depending on who you ask. We find out where you land across the panel before lodging anything.
We present it properly
Bonuses, commissions, trust income and rent are all read differently by different lenders. We go where yours is read fairly.
We check it still works
The repayment that suits you today should still suit you if rates move. We check that before recommending it.
Typical terms
What it usually
looks like.
General market practice, not an offer or a guarantee. What's available depends on the security, the structure and your position, and is subject to assessment.
- Maximum lending
- Up to 95% of the property value with lenders mortgage insurance; generally up to 80% without it
- Loan term
- Up to 30 years
- Rate types
- Variable, fixed, or split between the two
- Repayments
- Principal and interest, or interest-only for a set period where the lender allows it
- Features
- Offset accounts, redraw and extra repayments, depending on the product
Today's rates
Your loan.
Our rate.
A competitive variable rate for a loan like yours, kept in line with the market and updated live. Your numbers stay on your screen.
Kept in line with the major banks' advertised rates.
Your repayment
—per month
- Total interest
- —
- Total repaid
- —
- Repayments
- —
Indicative variable rate for a principal-and-interest loan matching what you've entered, reviewed against the market each time this page loads. It is not an offer of credit; your actual rate depends on assessment of your application. Repayments are estimates. They exclude fees and lenders mortgage insurance, and assume the rate doesn't change.
Comparison rates are calculated on a secured loan of $150,000 over 25 years. WARNING: This comparison rate is true only for the example given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.
Getting ready
What you'll
likely need.
- Identification and proof of income
- Recent payslips, or business financials if self-employed
- Living expenses and existing commitments
- Deposit or equity position
- Statements for existing loans and credit facilities
General market practice, not a Guardian requirement or guarantee. What any particular lender asks for varies by product, security and borrower.
It depends on the lender and the loan. Borrowing more than 80% of the property value usually means paying lenders mortgage insurance, and some lenders will go to 95% with it. A guarantor, or a government scheme you're eligible for, can sometimes reduce the deposit you need or the LMI you pay.
Fixing gives certainty for the fixed period, but it usually limits extra repayments and offset, and breaking it early can cost you. Variable keeps that flexibility. Many people split the loan to get some of each.
Only if the saving outweighs the cost of switching: discharge and government fees, any break costs on a fixed rate, and LMI again if you'd be borrowing above 80%. We work that out before you apply anywhere.
Further reading
Enquire
Find out where
you stand.
Send us the basics and we'll come back with a straight answer on what's realistic.
Sent
Your enquiry is with us.
Expect a reply within one business day. If it's time-critical, call (03) 9988 1452.