refinancing Wollongong

Refinance when your fixed rate is ending, your loan is more than two or three years old, or your property has risen in value. The common triggers are:

• Your fixed rate is ending and reverting to a higher revert rate

• Your rate has drifted above what new customers are being offered

• Your property has increased in value, moving you into a lower loan to value band and better pricing

• You want to consolidate higher interest debt into the mortgage

• You need to access equity for renovations, an investment purchase or business use

• Your circumstances have changed, such as separation, a new dependant or moving to self employment

Why Wollongong owners should check

Property values across Wollongong have shifted considerably in recent years. Many borrowers are sitting at a materially lower loan to value ratio than when they took the loan out, without realising it improves their pricing tier.

If repayments are the pressure point, see how to reduce your mortgage repayments. Our full walkthrough on how to refinance in Wollongong covers the process end to end.

Expect a discharge fee from your current lender, mortgage registration and deregistration fees to NSW Land Registry Services, and any application, valuation or settlement fee from the incoming lender. Some lenders waive several of these or offer a cashback that offsets them.

Two costs that catch people out

Break costs if you are exiting a fixed rate loan early. These are calculated on the lender's funding position, not a set fee, and can be substantial. If your fixed term is close to ending, see refinancing when your fixed rate ends.

Lenders Mortgage Insurance again, if your new loan exceeds 80% of the property value. LMI is not transferable between lenders, so read how to avoid LMI before you switch.

Weighing it up

A rate reduction on a large balance usually pays back the switching costs within months. We calculate the full break even in dollars and months before recommending a move, and if the numbers do not stack up we will tell you to stay where you are.

Yes. A cash out refinance increases your loan beyond the balance needed to pay out the existing debt, releasing the difference to you. Your usable equity is generally the gap between 80% of the property value and your current balance.

What lenders accept

Renovations, an investment property deposit, business use, vehicle purchase and debt consolidation are all accepted with supporting documentation. Larger cash out amounts attract more scrutiny, and some lenders cap the amount released without a formal contract or quote. See refinancing to release equity for the detail.

Structure it correctly

If the funds are for an investment or business purpose, take them as a separate split loan. That keeps the deductible interest cleanly separated from your home loan. Mixing the two into a single loan makes apportionment messy and can cost you at tax time.

We set the splits up at application, because restructuring afterwards means another full application. Our page on how to access equity covers the alternatives.

One refinance handled properly will not hurt your credit score meaningfully. Several applications across different lenders in a short period will, because it reads as either shopping under stress or repeated declines.

What actually happens

Each application creates a credit enquiry, which has a modest short term effect. Once the refinance settles, the old account closes and the new one is reported.

Closing a long held account can slightly shorten your average account age, but the effect is minor compared to your repayment history, which carries far more weight under comprehensive credit reporting.

The practical rule

Have the loan properly assessed before it is submitted, so it goes to one lender that will approve it rather than being tested across several. That is one of the clearest arguments for using a mortgage broker.

If your credit file already has enquiries or defaults on it, tell us at the start. There are lenders who assess low credit scores sensibly, but only if we approach them correctly the first time.