Refinancing has become a lot trickier. In a lot of instances you need to accept that second-tier lenders are your only option and they are more expensive.
Refinancing has become tougher due to the limited availability of funding and tighter credit criteria. The good news is, if you have a mortgage that is less than 80% of a property’s value then chances are we can refinance you into a much better deal with one of the major banks! You will also need to have a clean credit history and verifiable income.
If you have borrowed over 80% (or if you need to consolidate other debts onto your mortgage that takes you over 80%) then we will not be able to refinance you without bringing on another property as security.
Cost of refinancing
You will need to get a registered valuation (these cost $500 to $800) and use a solicitor (which costs $599). All up, allow for up to $1,500 in costs. That said, if your mortgage is over $250,000 we will arrange everything and cover these costs for you.
You may also have a fixed rate break fee. This fee can be several thousand dollars. It can generally be capitalised onto your mortgage, giving you the cash-flow benefit of lower interest rates straight away. We have done this for a number of clients to give them short-term cash-flow relief.
Who are we?
Squirrel is a mortgage broking and advisory business. We are happy to help you get the best out of your mortgages whether that is buying property, refinancing or simple restructuring everything to make it work better.
