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How a mortgage broker can help you when refinancing

Did you know every lender has different policies? This means that if one bank declines your loan, another lender might be happy to approve your application. A mortgage broker could point you in the right direction!

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Marc Terrano

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Sarah Megginson
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mortgage broker refinance If you're refinancing your mortgage to a new lender, a broker's expert knowledge could help you find a better deal and help you navigate the application process.

A qualified and experienced mortgage broker can:

  • Help you compare cheaper interest rates to work out how much you can save
  • Find mortgages with features that suit your needs - like an offset account, or fixed rate
  • Help you through the application process, to minimise your stress levels
  • Advise you on how best to access your equity

Compare more brokers in the table below

Data updated regularly
Name Product Upfront consultation fee Variable rates from Comparison rates from Lenders on panel Apply Now
eChoice
eChoice
$0
3.03%
3.04%
25
More Info
eChoice has a network of brokers Australia-wide and convenient online service. They work with lenders large and small.
Finsure
Finsure
$0
3.03%
3.04%
35
More Info
Finsure has a large panel of lenders and offers flexible mortgage solutions for borrowers.
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How can a broker help you refinance?

A mortgage broker specialises in helping people find suitable home loans. Mortgage brokers have relationships with multiple banks and non-bank lenders, and while they don't work for these institutions, they work with them to offer you a range of home loan alternatives. These professionals know exactly what the borrowing process entails, including everything from comparing home loans to applying for them and the settlement process.

Want to do it yourself? Read our detailed guide to refinancing

How to find a good mortgage broker when refinancing

Check their qualifications

To start, look for ASIC registrations and Mortgage & Finance Association of Australia (MFAA) or the Finance Brokers Association of Australia (FBAA) membership. The former is a prerequisite for mortgage brokers to operate in Australia, and ASIC enforces a strict level of education and experience amongst the nation's mortgage brokers. MFAA or FBAA memberships show that the broker in question follows high standards in regard to legal requirements and that they offer thorough transparency in everything they do.

Check their lending panel

The number and quality of lenders on the panel of one mortgage broker is not the same as another's, so you will need to look into this. When you have narrowed your choice down to a few mortgage brokers, you can use feedback and online reviews from previous customers to make a decision.

Review the broker's commission structure

Brokers work for you but get paid by the lender on commission. They're free for borrowers but it’s important that you review the commission structure your mortgage broker uses, to ensure they are going to find the best deal for you.

How a mortgage broker reduced a borrower's outgoings by $2,000 per month

Ken Stephens, founder, KT Financial Services, describes this mortgage application as "probably one of the hardest residential loans I've ever done". He shares how he helped one borrow pay off multiple personal debts into her mortgage, reducing her outgoings by $24,000 per year.

"I'd arranged a mortgage for this client about five years earlier, when she was married. They split up and she approached me for help to refinance her home following the divorce.

She wanted to consolidate her debts and loans into one loan worth $600,000. This refinance therefore involved a home loan that was split into two facilities, together with four personal loans and eight credit cards.

We were working with multiple lenders, including Westpac, Citi, NAB, Virgin and a few smaller brands. The borrower had fallen into a bit of a financial mess after her divorce and ended up in this very complicated financial situation. By the time she reached out to me, she was robbing Peter to pay Paul every week.

Many lenders didn't want to look at her application, because of how complicated it was. However once I explained the situation in detail, I found some lenders who didn't perceive her messy financial affairs as being 'high risk'.

We were able to get the loan with a non-bank lender, and she borrowed 80% of her home's value, which was good as there was no LMI payable. It took about five months to get it all sorted and there was so much paperwork involved, but she was able to reduce her monthly outgoings by about $2000 per week. She also has a plan to repay the mortgage loan as quickly as possible, so she's not paying these credit card debts over 30 years.

This is a great example of what mortgage brokers can do and the assistance we can offer to the public – we search a number of options and provide solutions that you can't always access going straight to a lender."

Learn more about mortgage brokers

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