Refinance, Consolidate and Compare Your Loan

Once you have had a loan in place for some time it's good financial sense to review its currency and ensure that you are receiving a great product that matches your lending needs at a competitive interest rate.

What's refinancing?

Refinancing your loan means to change the debt you have currently with one lender and either change products with the same lender (usually to offer you better flexibility) or to another lender who may be offering better rates and flexibility. When you refinance your mortgage, it usually helps reduce repayments. Most finance brokers will have more home loan refinancing clients than first home buyers.

Want to see our cheapest monthly repayments? Click on our calculator and enter your current loan details, if we work out cheaper, click the 'apply' button and well be in contact shortly.

What's consolidation?

When you have more than one loan, perhaps a home loan and a car loan -it often makes financial sense to combine the two; this is known as consolidating your loan or debt consolidation. Considering consolidation? Use our repayment calculator to work out your total loan amount and complete the details - see how low your monthly home loan repayment could be.

Compare Your Loan - use our loan calculator and see if your existing loan still cuts the mustard. Have your current home loan interest rate ready.

Types of Loans

Basic Variable Loan

Basic loans usually offer variable interest rates where the interest rate charged to the borrower moves according to the market.  Basic loans usually allow borrowers to pay either fortnightly or monthly repayments and are very competitively priced.

Basic loans may not offer features such as the ability to 'split' the loan, however features such as these are rarely used by first home buyers and often increase the cost of the monthly repayment.

Fixed Rate Loan

This is where a loan is locked in at a predetermined rate for a period of time, usually 1- 5 years.  It's a great way to ensure, to the cent, what your repayments will be each and every month for the term that you have agreed to.

Line of Credit (LOC)

LOC's allow borrowers to lend against the equity in their homes.  The amount that you borrow does not need to be taken in one amount on one day.  It is a great feature to have for renovators and investors because it allows you to draw as much or as little; down against the amount you borrow at a time that is suitable for you.

Interest Only

This loan allows borrowers to pay just the interest portion of the loan for a set period of time, usually between 1-5 years.  During the interest only term the principal balance remains unchanged. At the end of the term borrowers can elect a further interest only term or revert to principal and interest loan.

Standard Variable Rate Loan

The standard variable rate loan is the most common loan structure used in Australia.  The interest rate fluctuates depending on the market and the features of the loan are generally broader than a basic loan.
Standard Loans often include features in their products such as offset accounts, the ability to repay large amounts of the loan without incurring additional fees, credit cards/debit cards attached to the account, ability to redraw additional repayments etc.

Low-deposit, 100% & Above Loans and No-deposit

These are loans that require little to no deposit.  A Low-deposit product will generally require 3%-5% of purchase price to be saved as a deposit before funds will be lent. 100% loans usually require the borrower to have enough funds to cover expenses such as stamp duty, legal fees etc and No-deposit loans usually require no deposit.

These types of loans cost more to borrowers than standard loans and are generally only available to borrowers that meet all the other requirements lenders have (such as a good credit history).

Lo-Doc or No-doc Loans

Lo-Doc/No-Doc loans - require less documentation when proving income, credit history and repayment capacity than a standard loan would.

They are often used by borrowers who are self employed, where proving income is not as easy as a person who is employed and receiving regular payslips.

They generally cost more than a standard loan and therefore should only be used where a standard loan facility is not available to the borrower.

Credit Impaired and Non-Conforming Loans

Non-Conforming loans are designed for borrowers who have slight credit impairments, financial difficulties or who are having problems getting a loan through mainstream lenders.

They generally cost more than a standard loan and therefore should only be used where a standard loan facility is not available to the borrower.

Why use a finance consultant/mortgage broker

Because finance consultants have an understanding of the loan process and the criteria used by Lenders in evaluating borrowers they are able to make sure your loan application is completed quickly, correctly and that you get a loan which is right for you.

• They will work with you to identify your needs
• They have access to an array of loan products with many different lenders
• They will help you to understand the various deals that are on offer, explaining all the features and details
• They will lodge your application for you
• They will deal with the Lender for you
• They will arrange all paperwork necessary to secure the mortgage
• They will be there after your loan has settled and work with you to ensure your loan continues to offer you the outcome you need.

Choosing a finance specialist

Make sure your finance specialist is:

• A member of the Mortgage and Finance Association of Australia (MFAA) www.mfaa.com.au
• Part of a reputable aggregator (the grouping of a number of mortgage brokers into one, for the purpose of doing business)
• Happy to disclose fees and commissions
• Covered by Professional Indemnity insurance
• Has access to a broad panel of financial institutions
• Takes the time to understand your needs and assess your options
• Is part of an External Dispute Resolution Scheme such as Credit Ombudsmen Service Limited (COSL) www.cosl.com.au. COSL is an independent dispute resolution service for the credit industry. They assist borrowers should there be a dispute that is not resolved between the parties.

All brokers with The Lending Shop are members with MFAA - The Lending Shop is proudly operated by the Australian Loan Company Ltd.

MFAA Wholesale aggregator
of the year 2008

Finalist - Wholesale aggregator
of the year 2009