If this is you, find out how much you still owe on your loan and whether you have a fixed or variable rate. Once you have this info, use our home loan calculator to estimate how much you could be saving.
Can I refinance my home loan to access equity?
If you’re looking to renovate or make a big-ticket purchase, one of the pros of refinancing is tapping into your home equity to access additional funds. We know home renos can be expensive and this could be a con if you don’t have the cash upfront. In this case, refinancing is a great way to access equity already in your property.
Tips for making the big switch
You already nailed your home loan application, so the refinancing process should be a breeze. And this time you won’t have to worry about strata reports, pest inspections, open houses and auctions. #blessed
Here are some pros, cons and things to prepare for:
- If you’re switching banks, you’ll need to provide existing home loan statements and evidence of ownership. These documents will show how much you still owe on your loan and that you’re a total pro at paying it back.
- You’ll need to provide recent payslips, any alternative income statements, identification documents and credit card statements. If you have any outstanding debts, it’s a good idea to streamline your debt and consolidate what’s left.
- Check if your current lender charges an exit or break cost (we don’t!). This info should be available online, but if you have no luck, drop them a line.
- Make sure the new rate is for the long term and not just a honeymoon period.
- Interest rates are just half the story because they don’t factor in bank fees. We don’t charge any fees*, but with other banks, you could be paying close to $3,000. To find out the true cost of a loan, check out the comparison rate.
- Ultimately, you need to weigh up the costs and benefits.
Refinancing with UBank
Along with our award-winning home loans** and competitive rates, we also offer unlimited redraws on our variable home loans and the ability to manage your loan online.
You’ll also get access to Tracker, our easy-to-use online application tool that’ll have your new home loan sorted in no time!
So, what are you waiting for? Find out if you could be saving stacks of cash by simply switching banks and starting your refinancing journey today.
* UBank charges zero fees for variable rate loans, however there is a one-off fee if you decide to select a fixed rate loan.
** Winner of Canstar’s 2019 Bank of the Year Award and four Mozo Expert Choice Awards 2019 for variable and fixed rate discount offers.