Is there a limit to how often I can refinance my mortgage?

No – it’s well worth taking a look at your mortgage quite frequently to make sure your loan is still the right one for your particular needs. Savvy can provide you with the most current information about home loan interest rates and features from our lending partners, so you can make an informed decision on your current loan before switching your mortgage.

Will switching my home loan affect my credit rating?

Multiple credit enquiries in quick succession will show up on your credit report, which is why it’s important to choose the most appropriate lender to approach before you make your loan application. However, credit enquiries alone will not negatively affect your credit rating unless you get a series of loan rejections, which will negatively affect your credit score and may make you less appealing to lenders.

How long does it take to refinance a home loan?

If you stay with the same lender when you switch your home loan, you should get an answer from your lender quite quickly, with the process taking as few as one to two weeks. A full loan application with a new lender can take longer, so allow up to a month.

If I refinance with the same lender, will I still have to pay switching fees?

That will depend on your particular lender. Some will charge a switching fee, but other lenders may be prepared to waive switching fees to keep a good customer satisfied. Talk to your lender and ask if they are prepared to waive switching fees.

If I change lenders, will I have to submit all my documents again?

Yes – changing lenders will involve you making a whole new mortgage application, including providing documentation to prove your ID, income, expenses, assets and more. Your new lender will require all the same information as you provided when you first made your home loan application.

Is it possible to avoid fixed-rate break fees?

Probably not – if you have a fixed-rate home loan and are considering changing to another loan with a different lender, you won’t be able to avoid an early exit fee in most cases. You may have to either wait for the fixed term of your loan to expire or pay the exit fees.

Can I extend my home loan term with a refinance?

Yes – it’s quite possible to extend your loan term back up to a maximum of 30 years if you refinance, although this will depend on your age, how much of your initial loan you’ve already paid off and your current financial income and circumstances. You may look to do this to reduce the cost of your monthly repayments, but bear in mind it’ll increase the amount of interest and fees paid overall.