Do I refinance?
Refinancing Guide
Save More, Spend Less

Your house is the largest asset you may ever own . . . and your mortgage payment is most likely your largest monthly expense. Wouldn’t it be great if you could use this asset to put extra cash in your pocket while, at the same time, reducing your monthly payments?  By refinancing your mortgage, you can take advantage of the equity in your home and turn this dream into reality.

The information contained in this guide will help you understand the benefits of refinancing and the steps involved in the process.


Making the decision to refinance can be a difficult one, but it doesn’t have to be. Your Zar Mortgage Consultant will be happy to guide you through the entire process and help you achieve your financial goals.


Reasons to Refinance

There are many reasons to refinance your mortgage. The top five are:

  1. Take advantage of lower interest rates

    You may be paying too much interest on your home mortgage or investment property loan. This may be because the interest rates may have gone down reduced, your income has increased, your credit rating has improved or you can afford a bigger down payment. Refinancing can help you lower your monthly repayments and/or reduce the term of your loan.

  2. Change the term of the loan

    If you currently have a 30-year loan, you may be able to pay off the loan sooner and save thousands of dollars in interest by refinancing to a 10-, 15- or 20-year loan. Also, if the refinancing rate is lower, and you make the same monthly repayment, the equity in your home will build up faster, because more of your payment will be going towards the principal.

  3. Consolidate debts

    Home Loan interest rates are generally lower than the interest rates charged on your credit cards or personal loans. By consolidating all your debts with your home mortgage, you could save thousands of dollars in interest, fees and charges, while reducing the amount you pay each month in repayments.

  4. Change the type of mortgage

    You may want to change from an adjustable-rate mortgage to a fixed-rate mortgage, which provides the security of knowing what the repayments will be for the life of the loan. But if you don’t plan on keeping your house for at least five years, you may want to consider an adjustable-rate mortgage, which normally offers a lower interest rate during the first few years of the loan.

  5. Obtain cash from the equity built up in your home

    You may need cash for a major purchase, home improvements, a dream vacation or sending your kids to college. Whatever the reason, by refinancing for an amount higher than your current principal balance, you can obtain the cash from the equity built up in your home.

Do I refinance? Making the Decision to Refinance

The decision to refinance depends on many factors, such as the amount of equity you’ve built up in your home, how long you plan on staying in your home, your current financial position, and the charges and fees you may have to pay for the refinancing.

Whatever your reason for refinancing, eliminate the hassle of shopping around—we compare your home mortgage loan against over 800 home loans to make sure you are getting the best possible rate. With Zar Mortgage Brokers, it’s easy to decide if refinancing is right for you.

The steps involved in making the decision to refinance are as follows:

  1. Contact your current lender

    You will need to contact your current Lender to find out the balance on your current loan and any charges, fees or penalties that you may incur by paying off the loan early.

  2. Contact Zar Mortgage Brokers

    A qualified ZAR mortgage consultant will compare your loan against over 800 home mortgage loans to ensure you are getting the best possible rate. Your consultant will then provide you with your free Borrowing Capacity Check, Loan Comparison Report and Pre-Approval.

  3. Choose the home loan that best suits your needs

    The type of mortgage loan you select will depend on how long you expect to continue living in your current home and the monthly payment that you can comfortably afford. Your ZAR mortgage consultant will review your current loan to see how we may improve your financial position and help you choose a loan solution that is right for you.

The Refinancing Process

  1. Apply to refinance your loan

    After deciding to refinance and selecting the loan that is right for you, your ZAR mortgage consultant will help you apply for your loan. You will need to provide us with supporting documentation in regards to the loan(s) you are refinancing, your employment and income.

    We will also need to notify your existing lender that you will be discharging your loan with them.  This involves submitting a discharge request and obtaining payout figures.

  2. Approval and documentation

    Once all lending criteria have been met and ZAR has received all necessary documentation to process your application, we will notify you and issue a letter of offer. The letter needs to be signed and returned as quickly as possible so that we can arrange for your settlement.

  3. Arranging your settlement

    Once the signed letter of offer is received, we will organise settlement with your solicitor or conveyancer. This is a process where titles are exchanged and the bank registers a mortgage over your property.

  4. Drawdown your loan

    Congratulations! You’re well on your way to achieving your financial goals!


    Start saving more and spending less today!
    You have nothing to lose—Reports are free and there is no obligation to proceed with any home mortgage recommendations.

Compare Loan Options