Refinance your home loan, with the costs set out first
Refinancing can cut your costs or get you features you will use. It only pays if the benefits outweigh the costs of switching. Zafar Karim compares your current loan with loans from the lenders on his panel and shows you both sides before you decide.
Request a call about refinancing Call 0402 357 860
Zafar works Australia-wide by phone and video call, and meets clients in person in Melbourne by arrangement. Zafar does not charge you a fee. He is paid a commission by the lender whose loan you take out (how mortgage brokers get paid).
Refinance your home with us: up to 24 months of payments toward your loan
This offer is for refinancing the loan on the home you live in, where Véurr completes your loan application. Veurr Mortgage Broking pays $10 each month for every $100,000 of your net loan into your new home loan. These conditions apply:
- Only for refinancing the loan on the home you live in (your principal place of residence). Investment property loans never receive it.
- Only where Véurr completes the loan application.
- For loans of $300,000 to $2,000,000 in total.
- Your net loan is your loan balance minus your offset balance, worked out once when the new loan settles.
- Paid into your new home loan account, toward the principal. It is not paid to you, and it shows on your loan statement as a deposit.
- Payments start in the month after settlement and run for up to 24 months.
- Stops if the loan is closed, repaid or refinanced elsewhere.
- Paid by Veurr Mortgage Broking, not by the lender. The offer may change.
Illustrative example: a $500,000 home loan with no offset balance is a net loan of $500,000. That is $50 each month, up to $1,200 over 24 months, if every condition is met.
The costs of switching can be more than the contribution. Zafar must act in your best interests, and the contribution should never be the reason you switch.
Estimate your contribution, including investment loans refinanced at the same time.
Ask your current lender first
Moneysmart suggests telling your current lender you are planning to switch to a cheaper loan elsewhere. To keep your business, it may reduce the interest rate on your current loan. If you have at least 20% equity in your home, you have more to bargain with. A good credit score also helps. Compare any offer it makes with the other loans you are considering.
What switching can cost
Moneysmart lists these costs to check before you switch:
- A break fee if you are on a fixed rate.
- A discharge fee when you close your current loan.
- An application fee on the new loan.
- A switching fee if you move to a different loan with your current lender.
- Stamp duty, which may apply when you refinance. Check with your lender.
- Lenders mortgage insurance (LMI), which may apply if you have less than 20% equity. If you do switch, ask for a refund of some of the LMI from your current loan.
Moneysmart's mortgage switching calculator shows whether a switch would save you money and how long it would take to recover the costs.
Keep the loan term in view
A new loan can start a fresh term. Moneysmart says to be firm on the length of loan you want. Otherwise you could end up repaying over more years than you had left. The longer the loan, the more interest you pay.
What Zafar does
- Your Credit Guide. Before any credit assistance, you receive a Credit Guide explaining how he is paid and how to complain.
- Your current loan. He asks about the balance, the rate you pay now, its fees, any fixed-rate period and the years left.
- The comparison. He compares it with loans from the lenders on Mortgage Australia Group's panel, which does not include every lender.
- Costs against savings. He sets the costs of switching against any savings and explains why an option is in your best interests. You can ask for alternatives.
- Application to settlement. He prepares and lodges the application and keeps you updated until the new loan settles. The lender makes the credit decision.
If getting a better deal from your current lender is the better outcome, he will tell you.
When switching may not suit you
- Your current lender reprices your loan, and the costs of switching are no longer worth paying.
- You are part way through a fixed rate and the break fee would outweigh the savings.
- You have less than 20% equity, and LMI on the new loan could cost more than you save.
- You would need a longer loan term, and more interest overall, to make the numbers work.
- You hold a DHOAS-subsidised loan. Changing lenders can affect your subsidy, so read our Defence home loans page first.
If you are struggling with your repayments, talk to your lender first. Moneysmart explains your options in problems paying your mortgage.
An example of the trade-off
Illustrative only. Say breaking a fixed rate and closing your old loan would cost $2,000 in fees. A $500,000 net loan would earn a contribution of up to $1,200 over 24 months, if every condition is met. The contribution would not cover those costs on its own. Any saving on the new loan would have to make up the rest.
Worth weighing up
- Refinancing to release equity or combine other debts can mean repaying those debts over a much longer period.
- A lower rate is only part of the comparison. Fees and features count too.
- The contribution ends when the loan does. If the loan is closed, repaid or refinanced elsewhere within 24 months, the payments stop.
- Zafar compares loans from his lender panel, not the whole market. Approval is always the lender's decision.
Common questions
Should I ask my current lender for a better rate first?
Yes. Moneysmart suggests telling your current lender you are planning to switch. To keep your business, it may reduce the interest rate on your current loan. Compare any offer with the other loans you are considering.
What does it cost to refinance?
It depends on your loan. Moneysmart lists a break fee on a fixed rate, a discharge fee to close the old loan and an application fee on the new one. Stamp duty may apply. LMI may apply if you have less than 20% equity. Compare those costs with the savings before deciding.
Will refinancing reset my loan term?
It can. A new loan can start a new term, which can mean paying more interest overall. Be clear about the loan length you want when you compare options.
Can I refinance with my current lender?
Yes, you can ask to move to a different loan with the same lender. Moneysmart notes this can come with a switching fee. Compare it with the costs of moving to another lender.
Is the principal contribution a cashback?
No. It is not paid to you. Veurr Mortgage Broking pays it into your new home loan, toward the principal. It is $10 each month for every $100,000 of your net loan, which is your balance minus your offset. Payments start in the month after settlement and run for up to 24 months. It applies only to refinances of the home you live in, on loans of $300,000 to $2,000,000 in total, where Véurr completes the application. It stops if the loan is closed, repaid or refinanced elsewhere. The offer may change.
Does Zafar charge a fee to arrange a refinance?
Zafar does not charge you a fee. He is paid a commission by the lender whose loan you take out. Lenders may charge their own fees, which are disclosed to you upfront.
Talk to Zafar
Call Zafar, request a call back or send a message. Zafar works with clients across Australia by phone and video, and meets clients in person in Melbourne.