Meredith Williams
11th October 2022
Go from a refinance 'dreamer' to a 'do-er' in 3 easy steps.
Refinancing is a relatively simple process that allows you to do a number of things.
You might refinance to get a better rate, lower your monthly repayments, access the cash (equity) in your home, consolidate debt, adjust the loan term, or switch from a variable rate to a fixed rate (or vice versa).
In a recent report, consumers in New South Wales stand to gain $1,300 back in lower interest payments in the first year should they switch to a better home loan, while Victorians could gain back $1,200*.
We've already identified over $456m worth of potential savings for our customers to date using our loanScore tool.
Check your loanScore today - in 2 minutes you could find out if you could be saving thousands too.
In this guide we break down refinancing into 3 easy steps:
- Get the documents you’ll need to verify your income, expenses and liabilities ready (don't panic, it's only 8 docs!)
- Make a list of your assets, and their current value
- Find the right deal, and apply
Step 1: Get the documents you’ll need to verify your income, expenses and liabilities ready
When you contact UNO about refinancing your loan, we’ll ask you a few questions about your financial situation, such as your income and how much you spend each month. We’ll ask about any personal loans you have, credit card debt or store cards. Any commitments such as this are considered liabilities by lenders.
What you’ll need:
- Evidence in the form of payslips
- Your last group certificate
- Three credit card statements
Step 2: Make a list of your assets, and their current value
Next we’ll ask you about the value of the property you’re refinancing, your car, the superannuation balance of you and your partner (if you have one) and look at any savings you might have. We’ll ask about any investment shares and managed funds you possess, the value of any other real estate assets and whether you have home contents insurance.
What you’ll need:
- Super statement
- Savings account statements
- Proof of shares and funds
Step 3: Find the right deal, and apply
UNO can then search through thousands of home loan rates offered by our 30 lenders and help you choose the best mortgage for you. Once you’ve selected one, you’re ready for pre-approval.
From the time of lodging your mortgage application, getting pre-approval for a loan can take up to month. However, at UNO we have a digital lender that could provide an answer within 48 hours. As an online mortgage broker, we strive to get you pre-approval as quickly as possible so you can start the refinancing process stat.
What you’ll need:
- Photo ID such as a driver’s licence or passport
- An arm to pinch when you marvel at how absurdly easy that was
You can also read more about how fast you can get a home loan pre-approval.
Or, why not book in a quick call with our customer care team? You can schedule a call back or give them a call yourself.
When Is The Right Time to Refinance?
Savvy families and investors look at loan refinance as a powerful tool they can use to manage their finance or take advantage of a good opportunity.
Some common scenarios are:
- A lower interest rate comes along that could save them thousands over the life of their loan.
- They want to convert equity into cash so they can invest in something else, like a business or a rental
- Their existing loan does not have a feature they want such as a redraw or an offset account
- They want to lower monthly payments to manage their cashflow
- An investment property has become their primary residence or vice versa
- The loan holder wants to fix their rate because they believe rates may rise
Ready to refinance? Start here.
