Welcome to the final part of our short 4 part series of blogs and videos on refinancing your loans.  In this part, ‘The Process of Refinancing’ we look at what is involved in refinancing your loan.  We will keep it brief and to the point but as everyone’s circumstances are different we encourage you to CONTACT US for more information.  Just to recap in this series we will cover…

1. What is refinancing?
2. Why would I refinance?
3. How often should I refinance?
4. The process of refinancing…

OCEAN Lending – Process of Refinancing

You may recall in an earlier blog that we mentioned that refinancing is in affect replacing your current loan with a new loan, and that can be with the same or new lender.  So in that case the process you went through in the first place to get the loan will need to be repeated, ie a new application.  But before we get there, there is no point refinancing unless there is some actual benefit to you. Hence it is important to take stock and review your current personal and financial position first, so we know what we want to achieve. Once we have decided that yes we do wish to refinance below is a small summary of the process.

1. Our first step usually starts with us trying to renegotiate the rate with your current lender.  This helps ensure that you are on the best rate they can offer as we go through this process. In some cases this has avoided the need to refinance, as the new rate is much better than expected or what is on offer elsewhere.
2. Review your current personal and financial position.  This ensures that we can realise the benefits of refinancing and fit a lender and loan that fits your purpose.  You may not qualify for all lenders and vice versa not all lenders will be right for you.
3. Prepare and submit application: You may remember collecting ID, payslips, bank statements etc. It is the same again (also a new valuation on your home will need to be ordered)!
4. Discharge: If you are changing banks or lenders we will get you to sign the application forms for your refinance/sign a discharge form from your outgoing lender at the same time.
5. This notifies the outgoing lender that you are paying out the loan with a new loan from a new lender.  This is lodged once we are confident of an approval with your new loan.
6. Approval: We look forward to giving you the news that your new loan has been approved.  Once the loan is unconditionally approved you will receive new loan contracts to sign which we can work through with you.
7. New Accounts: If you are changing lenders the new lender should contact you to set up your new accounts. You can work with the lender to set up direct debits or you may wish to use your existing account with your previous lender.
8. Insurance: You will need to change the insurance on your property to let them know the new lender that has an interest in your party.  We can assist you in this process.
9. Settlement: Nothing you really need to do here. Both banks will arrange the settlement of your new loan.  It does take a few days for the funds to settle in the correct places, but we encourage clients to keep an eye on it, as the quicker we see an error the quicker we can correct it.

Would you like to know more CONTACT US for a FREE and NO obligation discussion.