This is when you have a loan with one lender and you are seeking to transfer your loan to another lender. This will be for a variety of reasons.
Refinancing can be confused with seeking a loan 'top up'. If you are wanting to increase your loan and remain at your current lender this is a loan 'top up', its only when you change lenders that it is a refinance.
So what are the main reasons to consider a refinance?
Not happy with your existing lender
You believe you can get a better loan structure & package at another lender'
You would like to increase your borrowings BUT your current lender does not wish to approve your application
A refinance means you would need to complete the entire loan application process, along with providing all the documents required for a loan application, and possibly employing the services of a lawyer to arrange the discharge or your current mortgage and transfer of your property title to a new lender.
The process begins with the assessment of your options, completed by your Think Financial Advisor. Once the options have been discussed and a new lender chosen, your application information is collected and submitted to the new lender.
If you are thinking about applying for a loan there are certain documents the
lender will wish to view to assess your loan for approval.
The information is broken into 3 parts:
The standard forms the lenders ask for
Other documents lenders may ask for
Forms Think Financial require for compliance reasons
loan application form - signed ||
confirmation of credit card conduct |
copy of photo ID ||
copy of registered valuation |
confirmation of income ||
further information maybe required |
bank account conduct (bank statements) ||
confirmation of deposit || |
Think Financial Forms
credit check ||
personal disclosure statement - signed |
confirmation of loan history ||
insurance statement - signed |
This is dependent on each application but there are general guidelines:
Once a lender receives an application, a response or approval can be given within 24 hours. If the lender is experiencing high demand this may be 48 hours.
The approval may still have conditions, and the time to make the offer unconditional will first depend on your ability to get the information required sent in to us in a timely manner. Once the lender receives the information, an answer can be received within 24 hours.
If your loan also needs to be approved by Lenders Mortgage Insurance, there may be an additional 24 hour delay.
In essence, if we receive all information you can be fully approved in 24 hours BUT in most cases we will submit the application with some but not all of the information.
The costs will depend on each applicant:
Loan application fee (unlikely)
Low Equtiy Fee, Lenders Mortgage Insurance Fee
Lo do fee (if applicable)
Registered Valuation Fee
The first 3 fees, if applicable can be added to your loan if requested, the last 2 items will be accounts
you will need to pay (if applicable).