Property Law | Refinancing a Property

How to Refinance a Property

Executive Legal can help you consolidate your debt or reduce your home loan repayments if you want to take advantage of lower interest rates.

As we know, buying or selling property can be a life-altering decision. That is why it is highly recommended that you seek the right legal advice. You may also need some assistance regarding refinancing the property and this is something Executive Legal is familiar with. Our clients are comfortable with having us deal directly with their lenders to ensure an efficient settlement.

It is our goal to provide hassle-free refinancing by assisting you from start to finish, while keeping constant communication and updates with what’s going on.

Our team at Executive Legal believes that buying a property should be an enjoyable moment for you, and that is why we want to make the process as stress-free as possible. We also make sure that our clients understand what is going on during the process of refinancing a property.

How Property Lawyers can help

It is vital that all the legal elements of the transaction are carefully managed from the beginning to the end when it comes to refinancing your existing real estate interest. The solicitors at Executive Legal will assist you with all aspects of your real estate transaction, starting at the point of your negotiations with relevant parties, to reviewing and advising you on all legal contracts related to the transaction.

We will conduct any necessary searches with utmost care and due diligence to make sure that all legal risks are eliminated.

Executive Legal can assist you with refinancing your property by:

  • Providing detailed advice prior to the refinance to ensure that the transaction is planned to be efficient and run smoothly
  • Providing independent legal advice in relation to the mortgage
  • Dealing with the discharging mortgagee on your behalf
  • Dealing with the incoming mortgagee on your behalf and satisfying all the requirements on the property requested by the incoming mortgagee
  • Ensuring a smooth settlement between both the incoming and outgoing mortgagees​
  • Why do people refinance property?

    Clients seek the assistance of Executive Legal on various refinancing related matters. Our expert team reviews the current home loans and investment properties for several objectives, such as increasing the client’s borrowing for certain purposes, being able to provide the benefit of lower interest rates for the client, and/or consolidating debt or reducing loan repayments.

    Some clients approach us hoping to get out of a high interest loan and refinance to one with a lower interest rate, drawing on equity that has increased value due to the appreciation of the property value. In this case, the client has chosen to refinance to take advantage of loans with better benefits—like fixed rate options, split loans, line of credit type facilities, redraw facilities, and more.

    Some clients want to refinance to be able to have the chance to consolidate or streamline debt. This process involves incorporating all high interest debts like personal loans and credit card debt into one low interest rate debt—a home loan.

    Converting the high interest debts into a home loan has many benefits such as the significant decrease of the overall interest payable. If the client intends to manage their existing short-term loans through streamlining them into a single long-term loan, debt consolidation is the solution. If you are considering refinancing make sure that you speak to a conveyancer, a mortgage broker and/or your bank to be advised how the process works.

    Another reason for refinancing is to reduce home loan repayments. By refinancing your property, you are opening an opportunity to reduce your repayment. This is an option you may choose if you find a home loan that offers a lower interest rate or fewer ongoing fees.

    Preparing to refinance your property

    You should be provided with a detailed costing from your intended financial institution before you commit to refinancing your property. You should be prepared for a possible cost to be incurred when you are discharging your existing loan. There will be possible expenses on a discharge fee, legal costs, early repayment fees, interest break costs and more.  Keep in mind that your loan is likely to have some provisions that would require you to reimburse the lender for their lost interest; this is why these costs can be high. This is especially true when you have a fixed interest loan and you’re paying out the loan during a time when interest rates are lower.

    Aside from the costs from your existing provider you will also incur some charges from your new financial institution, including an application fee, valuation fee, legal costs, title searches, registration fees and more. It is also possible that they will insist on convincing you to take out mortgage insurance, a survey, a council building certificate and other services.

    If you are faced with a decision to either refinance your property or not, it would be in your best interest to consider the loans that a number of financial institutions offer. This includes options like having a mortgage broker assist you with the concern. This also means that you will learn all about the different types of loan options available to you. This includes loans that have fixed interest, interest-only, principal and interests, variable rates, and the different kinds of honeymoon periods that are available to you. Moreover, these experts can also give you the best advice based on your financial situation and your goals.

    Get in touch with us!