A fast refinance can save you time, money and headaches.
Refinancing your home loan doesn’t have to be a slow process. A lender offering a fast refinance can have your new home loan settled in days, and you can start saving money. If you’ve decided to refinance, it’s worth looking for lenders that offer this option.
What is fast refinancing?
Fast refinancing is a way your new lender cuts your old lender out of the picture in order to get your new home loan quicker.
Generally, refinancing requires your new lender to communicate with your old lender in order to exchange documents. The main detail holding up the process is your old lender providing the title to your property. With traditional refinancing, this happens before your new lender releases funds.
The problem with this is that your old lender has very little motivation to do any of this in a timely manner. After all, for every day you’re still on your old home loan, they’re making money in interest. The speed, or lack thereof, with which lenders move means refinancing can usually take more than a month, costing you a significant amount of home loan interest.
A fast refinance doesn’t allow your old lender the option of slowing down the process. Instead of waiting on the title to your property, a lender offering a fast refinance will release funds directly to your old loan account and have it closed immediately.
The entire process of a fast refinance can take as little as two weeks from initial application to settlement. Once your loan is approved and all your documents are in order, you could be on your new home loan and saving money within a couple days.
Why should I choose a fast refinance?
A fast refinance means you’ll be saving a significant amount in home loan interest. Moreover, lenders offering a fast refinance often don’t charge fees for the process.
In addition to saving money, you’ll save time and stress. Fast refinances mean less legwork for you. Your new lender will handle most of the work involved in getting the paperwork for your refinancing in order.
What do I need to provide?
To refinance your home loan as quickly as possible, you’ll want to have some documents in order before you apply for your new home loan. You’ll need details about your current home loan, including the outstanding loan amount. You’ll also need to provide three months of bank statements.
In order to qualify for a fast refinance, you’ll also want to make sure your property’s title doesn’t have any caveats or restrictions on it and doesn’t have any other debt secured by it, such as a business loan. Also, if you’re in a fixed rate loan with your old lender, it’s unlikely you’ll qualify for a fast refinance within the fixed rate term.
Which lenders offer fast refinance?
Many lenders offer a fast refinance option for qualified borrowers, a few of which you can see in the table below. Choosing one of these lenders for your refinance means you can start saving money sooner.
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What if my lender doesn’t offer fast refinance?
If your lender doesn’t offer you this option, it may be because of your specific circumstances. It could be a problem with the title on your property or the the transition between the type of loan or lender.
However, there are some things you can do to help speed up your refinancing application:
- First, make sure you have all the necessary documents ready before you apply. This will save you valuable time going back and forth fielding requests for more information.
- Second, if time is of the essence, let your new lender know. They may be able to prioritise your application.
- Finally, don’t be afraid to contact your old lender and make sure the process is moving in a timely fashion. Let them know you’re paying attention and haven’t forgotten that every day that goes by is a day that costs you more money.
Even if you’re not eligible for a fast refinance, refinancing can still be a great option. Even if it takes a bit longer to get your new home loan, you could save many thousands of dollars in the years to come.