A step by step guide to reassessing your home loan
We know essential workers can often face difficulty buying a new home (or refinancing) due to the way some lenders may view and assess your income. That’s why ME Bank designed a home loan service offering to cater to essential service workers like NSWNMA members – taking into consideration your unique employment conditions – such as variable hours, income, often multiple employers and even short tenure.
Or, if you already have a home loan and have held off due to these same difficulties (or just haven’t thought about it), ME Bank’s put together a handy seven step checklist to make sure have everything you need to know to refinance – hopefully saving you some stress and of course money.
Step 1: The why.
Knowing why you’d refinance makes it easier to find the best new loan for you. Common reasons include securing lower interest rates, better service, better loan features, consolidating debt and accessing home equity.
Step 2: The options.
Time to compare apples (and oranges). Check out comparison sites, and talk to lender bankers to determine which loan has a rate and features to suit.
Step 3: The numbers.
Refinancing can come with costs like upfront fees on the new loan, exit fees on the old loan, plus mortgage registration fees. And note that Lenders Mortgage Insurance (LMI) can’t be transferred over.
Step 4: The application.
Refinancing means completing a whole new round of paperwork. You’ll need proof of income, personal ID and statements showing payments for your current loan. It’s worth noting bankers can help with paperwork.
Step 5: The valuation.
It’s likely the new lender will want to value your home. Make sure you understand what to expect from a valuation (and spruce up the place a little before it’s assessed).
Step 6: The approval.
Got the tick? You’ll get formal loan documents to sign, so be sure to read the paperwork carefully, and speak with your solicitor, conveyancer or banker if you have any questions.
Step 7: The settlement.
High five! On settlement day, your new lender will receive the title deeds to your home (from your old lender), and the old loan will be paid out. Then settle into repaying your new, improved loan.
To check out ME’s essential worker home loan offering – or to refinance – head to https://www.mebank.com.au/lps/home-loans/essential-workers/ today and book in an appointment at a time that suits you.
This article was prepared by ME Bank – a division of Bank of Queensland Limited ABN 32 009 656 740 Australian Credit Licence 244616. ME Bank is the provider if the home loan products referred to above.