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Why refinancing could be a good idea
Did you know that even a small reduction in your interest rate can equate to big savings off the life of the loan? Find out about some of the benefits of refinancing.
How to make refinancing easier
Refinancing is easier than you think. Find out just how easy it can be to make the switch to Bankwest.
Save money on your home loan
Here are some great reasons to think about making the switch:
You can save money.
Even a slightly lower interest rate could save you huge amounts of money over the life of your loan. You could also restructure your loan to save on your regular repayments and work out ways to reduce the term of your loan.
You can enjoy new features.
We’ve created our Bankwest home loans with a range of flexible features in mind. For example, most of our variable home loans have free online redraw so you can access your extra repayments 24/7 through online banking or your mobile app.
Work out new ways to spend the money you save.
If switching your home loan now could save you in the longer term, you can work towards your financial goals sooner. This could mean planning your bathroom renovations, adding a pool or finally going on that overseas trip!
Your fixed rate might be about to expire.
If you initially chose a fixed rate home loan, it's always fixed for a set time before your rate becomes variable. The end of your fixed rate period could be the best time to shop around for a better deal for the remainder of your loan.
Choosing the right home loan for your situation is a major financial decision, so it's important to spend some time looking into your options. Explore our range of Bankwest home loans or find out why it could be worth consolidating your debts.
Debt consolidation to save money
One great reason to refinance your property is that we will complete a valuation on your property! Chances are, your property has not be valued since you first purchased it, so it is a great opportunity to see how much your property value has grown.
As a part of this process, you will find out what your equity position is, so you have an opportunity to use some of this equity to improve your financial position. You could consolidate some of those credit cards that aren’t getting any lower, or perhaps that car loan that you seem to have had forever.
Don't worry, we can keep this loan separate from your main home loan, however you will be taking advantage of low home loan interest rates, rather than the higher credit card rates. If you were to keep making the same repayments, not only will you save money on interest, but you could potentially be paying off the debt quicker! We can have the consolidation process wrapped up in just a few weeks (dependent on you providing Bankwest with the necessary documentation).
Take advantage of refinance savings
Refinancing to save money is a great opportunity to consider what you could use that extra cash flow for. Have you considered:
You have always wanted to re-do your kitchen, but have never really had the spare cash to do it. By refinancing, you are reducing your monthly repayment amount to keep extra money in your pocket, plus you are discovering how much equity you have, which could be used to borrow funds to finance your renovation. What could a renovation do to the value of your property?
When you refinance to us, we will complete a new valuation on your property. This is useful as chances are you haven’t had your property valued since you purchased it. Once you know your property value, you will know if you have any available equity. You could then look to use this equity to purchase that investment property you have been thinking about. Plus the money you are saving in repayments could help contribute to this investment as well. Find out more about investing to see if it is something you might like to consider.
The extra cash in your pocket can help you do the things you have been trying to save for. Take that overseas holiday or upgrade the car, the opportunities could be endless. Even a small reduction in your interest rate can lead to big savings over the life of the loan.
If you decide that you want to maintain the same repayment amount, you are potentially paying more than what is required. Not only will this build up your home loan surplus for a rainy day, but in the interim you will be saving even more on home loan interest. To work out what the potential savings could be, try our extra repayments calculator. Also, consider extra ways to save by using an offset account, a great way to use your everyday savings to reduce the interest payable on your loan.
Why should you choose Bankwest?
Here are just some of the reasons why you should consider choosing Bankwest:
We have a team of dedicated Home Loan Specialists ready to help you with your home loan application. We understand that every customer is different and that your home loan is probably your biggest expense, so it’s important to get it right. Our Home Loan Specialists are here to help you with real banking solutions to help you achieve your goals and are armed with answers to your burning questions, making sure your switch to Bankwest is an easier one. Why not get those questions answered today?
Switching banks doesn't need to be hard. Our Home Loan Specialists are here to make the switch a smooth transition. You can choose to start your home loan application online, over the phone or in person. Our Home Loan Specialists are available to meet you in the morning, afternoon, evening and even on the weekend – at your home, office or local Bankwest store. Once you have moved over to Bankwest, you can use our online banking system 24/7 to keep track of your money.
With a great range of home loan products, refinancing your mortgage to Bankwest has never made more sense. Even a small reduction in interest rate can lead to big savings. And if it's not just savings you’re interested in, our home loans have a great range of features such as online redraw, extra repayments and the flexibility to make your repayments weekly, fortnightly or monthly.
What to consider before you refinance
Loan to value ratio
A loan to value ratio (or LVR) is the total percentage of your property value that you have borrowed for your home loan. For example, if your home loan is $320,000 and your property is worth $400,000, your loan to value ratio is 80%. When you refinance, Bankwest can lend you up to 90% of your property value. Your home loan might be much less than 90% of your property value, so you could potentially borrow a little extra to fund that renovation or pay off the credit card.
While there might not be a large difference in the interest rates between your current bank and Bankwest, even the slightest reduction in a rate can equate to huge savings. The best way to work out the value in refinancing is with our loan comparison calculator, which will work out how much interest you could save by refinancing to us.
This is when we remove your current lender's name of your property title, and replace it with Bankwest. Don't be put off, arranging a discharge from your current lender actually isn’t that hard. You just need to complete a simple form and submit it to your current lender, and we will work with them to arrange a day to transfer it over, no settlement agents involved!
What costs are involved in refinancing?
Banks will usually charge a fee for you to discharge your mortgage (this is when the bank's name is removed from your property title). The cost varies from bank to bank and usually takes a few weeks to be processed, so best to get the form submitted to your bank earlier, so you can start enjoying the interest savings sooner.
Lenders Mortgage Insurance
If we are lending you over 80% of your property's value, you may need to pay Lenders Mortgage Insurance (or LMI). Your Home Loan Specialist will be able to work out what this cost may be, but don’t worry, in most circumstances you can include this premium on your loan amount.
Banks don't typically charge exit fees for variable loans. However, if you are currently on a fixed rate loan at your bank, you may have to pay a break cost. This depends on how long is left to run on your fixed term and what your fixed interest rate is. Your bank will be able to provide an estimated break cost. Don't be put off by the break cost straight away, you might find that with the interest savings from refinancing, you could break even sooner that you think! Our loan comparison calculator will help you work out what your interest savings are.
The refinance process
1. Get started with your application
You can choose to get started online, and a dedicated Home Loan Specialist will contact you to complete your application. Alternatively, you can make an appointment or give us a call.
2. Formalise your application
Your Home Loan Specialist will advise you what documentation you need to provide to complete your refinance. Find out what you may need to refinance your home loan.
As a part of the refinance process, we will arrange to complete a valuation of your home. This is a good way to check in to see what your current equity position is!
Once your loan application has been finalised, it's a good idea to start the discharge process with your current bank to avoid any delays. Contact your current bank and request a discharge form, which you will need to complete and return to them.
Once your loan application has been approved, we will send out home loan contracts for you to sign. Once you return these to us, we are ready to complete the refinance.
Bankwest will arrange with your current bank the earliest date we can transfer over your home loan. You don't need to worry about settlement agents, as we do all of that for you.
That’s it, you have refinanced – much easier than first thought!
Take the stress away from switching banks
Once you have made the decision to leave your bank to save money or improve your overall banking products, you will need to discharge your mortgage from your current bank. This might sound difficult, but it really isn’t. All you need to do to initiate the discharge is complete a discharge form, and return it to your bank. They will arrange the rest for you.
The day your loan is officially refinanced will be worked out between your banks. You don't need to worry about engaging a settlement agent, as the banks look after it all for you. On the day of the settlement/refinance, the only change is that your current mortgage will be paid out and replaced by a Bankwest mortgage, and your current bank’s name will be removed from your property title and replaced with Bankwest. That's it!
Your Home Loan Specialist will be able to assist you with any of your refinance questions, to make the process easier for you. If you decide to bring the rest of your banking over with you, we have a great switching tool which can help you with this as well.
Our tools and calculators can help you crunch the refinance numbers yourself.
Popular home loans for refinancers.
Find out more information.
The information contained in any report is of a general nature and is not intended to be nor should it be considered as professional advice. You should not act on the basis of anything contained in the report without first obtaining specific professional advice. Also to the extent permitted by law, Bankwest, a division of Commonwealth Bank of Australia ABN 48 123 123 124 AFSL/Australian credit licence 234945, its related bodies corporate, employees and contractors accept no liability or responsibility to any persons for any loss which may be incurred or suffered as a result of acting on or refraining from acting as a result of anything contained in the report.