New home, renovating or refinancing - We’ve got loans to suit you - Part Two

9 September, 2019
It’s good to review your home loan every now and then. 

Your needs often change over time, or your current home loan may not be giving you the best value.

Or - you may be looking to use the equity in your home to renovate! Very exciting stuff.

So, where do you start? How much equity do you have? What type of loan is best for you?

Here is Part Two in our series.

(If you missed Part One about a new loan - for a new home! - you can read it here.)

Thinking of renovating? Let’s talk refinancing

The first step is to reassess your current loan to ascertain what else you might need, and compare it to others on the market.

You may wish to consolidate debt or access some of the equity you currently have in your home.

There are two options here - you can choose to stick with your current lender - and negotiate a better deal with them - or move on to someone else. 

Stay - or leave? Look at the fees

It’s important to look through any fees you might need to pay, in each situation.

Two of the big ones to consider are:
  1. an exit fee, in order to leave your current loan
  2. upfront costs associated with your new loan

If your current loan has been on a higher fixed rate than the new one, you may incur a  penalty fee.

However - if you’re staying with the same lender, they may choose to waive some of the fees in order to keep you as a customer.

Some loans can look more attractive than others because of lower ‘upfront’ fees, but it’s important to check the fine print and look at their ongoing/annual fees.

Once you’ve decided on the best loan or lender for you - it’s time to calculate the costs and determine how much more money you need.

What the lender will look for

Here is a list of some of the things the lender will look to do
  • Perform a valuation of your house.
  • If you’re looking to renovate, they might like to see some quotes for the work being done, to get an idea of cost
  • Assess your equity, as a guide to what they can lend
  • Reassess your circumstances - you may have changed jobs, you might have started a family. They will look to see how your lending capacity has changed

The CWCU difference

At CWCU, we are a customer owned institution - meaning our focus is on our community, and the services we provide to them.

Our Mortgage Smart Home Loan has a wide range of benefits, with complete functionality and flexibility. It’s got offset and redraw features.

Sometimes unforeseen things happen and we understand this. We factor in your circumstances - and don’t just go by the numbers. This is what sets us apart from other lenders.

Contact us today if you’re looking to refinance - we can work with you to make a deal that meets your needs.

Contact us to arrange a deal

Get a great deal on your home loan