REFINANCE

Unlocking the Benefits of Home Loan Refinance

Why Should I Consider Home Loan Refinance?

There are numerous reasons why individuals opt to refinance their home loans. Below, we outline common motivations for home loan refinancing:

1. Potential Savings: Refinancing enables borrowers to take advantage of better home loan deals, such as lower interest rates or reduced ongoing fees. While the benefits may not be immediately apparent, over the loan’s lifespan, a switch may also result in potential savings.

2. Borrowing More: Refinancing provides borrowers with the opportunity to increase their current loan. Whether renovating the property or pursuing new investments, borrowing against your home can offer a stable level of equity compared to other loan
options. The amount of equity in the property determines the additional funds accessible.

3. Restructuring: Refinancing your home loan presents an opportunity to restructure loan repayments. For instance, transitioning from a principal-and-interest loan to an interest-only loan can free up cash flow for alternative investments.

4. Bundling: Consolidating loans from various financial institutions under a single lender can be advantageous. This consolidation often grants access to package deals or other benefits, resulting in long-term cost savings.

5. Adding Features: Switching to a new loan deal may provide access to additional financial tools and features. Your existing lender or bank might authorise offset accounts or redraw facilities, enhancing flexibility and control over your finances.

6. Consolidating Debts: Some lenders allow borrowers to consolidate multiple debts or loans within a single home loan package. While there are risks associated with this approach, a well-structured consolidated loan portfolio can yield significant savings over the long term.

Looking to Refinance Your Existing Home Loan?

Unlocking the Benefits of Home Refinance Loans Refinancing your home loan serves various purposes, each tailored to your unique financial goals. At ZK Finance, we prioritise understanding your objectives to ensure long-term financial prosperity. Our step-by-step guidance through the refinancing process ensures you’re well-informed about every aspect.

Exploring Your Options

We kick off by helping you explore available deals. With access to over 30 lenders, ZK Finance offers a comprehensive analysis of repayment options perfectly suited to your needs. During this phase, we meticulously compare loan features, lending criteria, and comparison rates across various financial products.

Ensuring Affordability

As we narrow down suitable refinancing options, our team verifies your ability to afford the transition. While always considering your budget and expenses, we conduct thorough checks to streamline your loan application process. Strengthening any existing equity in your property can help cover break costs charged by your current lender, ensuring a smooth transition.

Streamlined Application Process

Once you’ve identified an eligible loan, it’s time to apply. ZK Finance handles the entire application process on your behalf, liaising with relevant institutions and negotiating favourable terms.

Enjoy Your Home Refinancing Success

Congratulations on successfully refinancing your home! Hopefully, you’ve secured a much-improved deal compared to your previous one. While the entire process may take up to two months, proper planning ensures a smooth transition. For more insights on how ZK Finance can assist you with home refinancing, reach out to us today!

Can I refinance from a fixed rate home loan?
When you opt for a fixed-rate loan, your interest repayments are set at a specific rate for a predetermined period, typically one to five years. This ensures your repayment amount remains steady throughout the fixed term, regardless of any interest rate fluctuations. However, if you decide to refinance your home for a better deal before the fixed term ends, you may face significant penalties compared to variable repayment plans, where interest rates can change. While refinancing a fixed-rateloan is possible, it’s important to note that associated fees may exceed your
expectations.

Understanding Refinancing Fees:
Transitioning to a new lender or financial product inevitably involves various fees. Below, we outline these potential fees and their applications. Please note that not all fees listed below may apply to your situation, as they depend entirely on the policies of your chosen lender.

1. Discharge Fee:
Your current lender typically charges a discharge fee when you request a loan payout.

2. Application Fee:
Signing up with a new lender often involves an application fee.

3. Valuation Fee:
New lenders may charge a fee to assess the value of your property. However, many banks absorb this cost, easing your financial burden.

4. Lenders Mortgage Insurance (LMI):
If your mortgage balance is still less than 20% of your property’s value, you may need to pay LMI, similar to your previous lender’s requirements.

5. Break Fees:
Fixed-rate loans usually incur break fees if you refinance within the fixed term.

Understanding these fees is crucial for making informed decisions about refinancing your home loan. If you’re considering refinancing or need further clarification on associated costs, don’t hesitate to reach out to us for expert
guidance.

Reach out to ZK Finance today to explore how you can maximise the potential of your home loan.