5 tips to help you refinance your home loan
Refinancing your home loan can lead to many benefits. You could get a better interest rate, access more features, or get access to additional funds to renovate. If you’re ready to make the jump and begin the refinancing process, here are 5 tips to get you started!
1. Check your credit score and credit report
Before you do anything else, check your credit score. If you have a low credit score, a potential lender may not approve your application to refinance. Your credit score is an indication of your credit worthiness and calculated from the information in your credit report. That’s why it’s important to check your credit score and credit report to make sure they are accurate and up to date. Correct any errors and look for areas of improvement to give yourself the best chance at approval.
2. Make your repayment history spotless
While you check your credit report, pay particular attention to your repayment history. If you’re refinancing your home loan, a potential lender will want to know that you have a history of making your repayments on time, every time. While missing on repayment in the past is not a total deal breaker, get yourself back on track as soon as possible and stick to your repayment schedule.
3. Do your research
Compare your current home loan with the latest offers in the market. Knowing what other lenders are offering will be particularly helpful in the negotiation process of your next application. You can also make use of Credit Savvy’s home loan calculators to help you calculate the repayments and potential savings.
If you need help from an expert, consider booking a free appointment with an eChoice mortgage expert to get all your questions answered.
4. Get all your ducks in a row
Before you start your application, you’ll need to get yourself home loan ready. Gather up all the required documents such as your payslips, bank statements, and loan documents beforehand so that one missing document doesn’t slow down your application. Remember, lenders look for stability when they assess your application. If you’ve recently changed jobs, gone on maternity leave, or had any major changes to your financial situation, you may want to hold off refinancing.
5. Talk to your current lender
If you’ve found yourself a better deal, ask your current lender if they can match it. You may be surprised by what your lender is willing to offer you to keep your business, so you may be able to score yourself a better offer without having to go through the whole application process with another lender.
Want to learn more about refinancing? Head over to the Learning Hub for more tips and tricks.