In a nutshell, refinancing means moving your home loan from one lender to another. It’s not a loan transfer, which involves swapping to a different type of home loan, changing your repayments, or splitting and combining loans, all while remaining with the same lender.
Essentially, when you refinance to another lender, it’s considered a whole new loan to them. Because you’re not buying a new home, the process doesn’t involve another vendor or settlement agent, although you do still need to get the property valued.
Before you decide to refinance, it’s worth looking at what your current lender is now offering because there might be a new home loan with more flexible features or add-ons that can help you meet your goals.
Take a look at some reasons to refinance