How to Refinance from Australian Unity: A Comprehensive Guide

Understanding Refinancing: Why Consider Leaving Australian Unity?

Refinancing involves replacing your current mortgage with a new one, either with your existing lender or a different one. There are several reasons why you might consider refinancing from Australian Unity:

1. Lower Interest Rates: Interest rates fluctuate, and you may find lower rates elsewhere, potentially reducing your monthly repayments. 2. Better Loan Features: Other lenders might offer features such as offset accounts or redraw facilities that Australian Unity doesn't provide. 3. Debt Consolidation: Refinancing can help you consolidate other debts into one manageable payment. 4. Change in Financial Situation: If your financial situation has improved, you might qualify for better terms.

Steps to Refinance from Australian Unity

Step 1: Evaluate Your Current Loan

Before making any decisions, assess your current mortgage terms. Understand your interest rate, fees, and features. This analysis will help you compare potential new loans effectively.

Step 2: Research and Compare Lenders

Explore other lenders' offerings. Use comparison websites or consult a mortgage broker to find competitive rates and favourable terms. Remember to consider not just the interest rate but also fees and loan features.

Step 3: Calculate the Costs

Refinancing involves costs such as discharge fees from Australian Unity and application fees from the new lender. Calculate these costs against potential savings to ensure refinancing is financially beneficial.

Step 4: Apply for Pre-Approval

Once you've shortlisted potential lenders, apply for pre-approval. This will give you a clearer idea of how much you can borrow and under what terms. It also strengthens your position when negotiating with lenders.

Step 5: Complete the Application

After securing a pre-approval, proceed with the formal application process. Gather necessary documents such as proof of income, identification, and information about your current mortgage.

Step 6: Settlement

Once approved, the new lender will handle the settlement process, which involves paying off your existing loan with Australian Unity and setting up the new loan. Ensure you keep track of all communications to avoid any hiccups.

Practical Tips and Advice

• Check Your Credit Score: A healthy credit score can significantly affect your ability to secure favourable loan terms.
• Negotiate: Don’t hesitate to negotiate terms with your new lender. They might be willing to offer discounts or waive certain fees.
• Consider Fixed vs Variable Rates: Decide whether a fixed or variable rate suits your financial goals. Fixed rates offer stability, while variable rates might provide savings if rates drop.

Common Mistakes to Avoid

• Ignoring Fees: Overlooking exit or entry fees can negate the benefits of refinancing.
• Not Reading the Fine Print: Ensure you fully understand new loan terms, including any penalties for early repayment or hidden charges.
• Switching Too Often: Frequent refinancing can lead to significant costs over time. Ensure the benefits outweigh the costs before proceeding.

How Esteb and Co Can Help

At Esteb and Co, we specialise in guiding clients through the refinancing process. Our expert brokers can help you compare lenders, understand complex terms, and negotiate the best deal. We provide personalised advice, ensuring that your new mortgage aligns with your financial goals.