Refinancer

Before you start exploring refinance options, it’s a good idea to check your current financial position and the amount of equity in your property to determine whether it’s the right time to refinance.

Remember when you apply to refinance your finance provider will assess your ability to pay the instalments based on the information you give them and what’s currently expected in the industry.

Most home finance arrangements require a minimum of a 20% equity in your home prior to refinancing. If you don't have that amount of equity in your home, additional requirements may apply.

It is important to do your research to determine where you would ultimately like to refinance to. You can enquire directly to financial institutions like Crescent Finance. You can also use comparison sites or a broker.

Your research has hopefully revealed the eligible financial institution and products that match your individual needs and circumstances.

Some institutions, like Crescent Finance, will offer an indicative application process where you are required to register your interest prior to being formally approved.

You will need to provide certain information and supporting documents to the finance provider to decide whether to approve your application, that can include:

• Personal details
  Such as the name, age, address, contact details and proof of identity (eg: driver’s license, passport) for each applicant.
  
  
• Family situation
  Including your relationship status and the number of dependents you support.
  
  
• Employer
  Your employer’s (or if you are self-employed your accountant’s) business and contact details, to establish your stability and income to repay the loan over a period of time.
  
  
• Earnings
  Your current income, with evidence like pay slips and income tax returns.
  
  
• Expenses
  Your current expenses, with evidence of bank statements and copies of bills.
  
  
• Assets
  These include things of value that you own, including property, investments, cars, contents of your home or even collectables.
  
  
• Liabilities
  Money you owe other people that will need to be paid back now, or in the future. For example, an existing home loan, investment loans, credit cards, a personal or car loan.
  
  
• Current loan and property
  Including enough detail for your new lender to be able to first pay out your existing loan and then take a new mortgage over the property.

Once the lender has these details, they’ll ask your permission to conduct a credit check to ensure your financial records match those you’ve provided.

Once approved, your new lender will send you a new contract with your new mortgage documentation. As with any contract that involves large sums of money, Crescent Finance recommends you seek professional advice from an independent advisers such as a legal practitioner before you sign.

Once you’ve signed the documents, your new lender will usually organise to pay your old lender. Please note that delays from your old lender can affect your loan settlement date.