5 things to look for when refinancing your home loan

You want to switch to a home loan with a lower interest rate, but simplicity, speed and flexibility matter too.

Refinancing a home loan is all about getting a better deal that saves you money, while also giving you more control over your money.

Here are 5 things you need to look for when refinancing your home loan.

1. Always look for a lower interest rate

While home loans can be complex financial products, one of the most important factors is the interest rate. The lower your rate, the more money you could save in the form of lower repayments.

Most refinancers switch to a home loan with a lower interest rate. Right now, a competitive home loan rate for the average owner-occupier is under 6.00% p.a.. If the rate starts with a 5, you're in the right place.

2. Look for a lender that looks after you

The harsh truth is that some lenders are happy to offer low rates to bring in new customers while keeping loyal, long-term customers on higher rates.

But some lenders are more committed to their customers. Unloan offers its borrowers a 0.01% p.a. annual interest rate discount. This means that every year you're with Unloan (up to 30 years), your rate will drop by 0.01% p.a.

In the last year of a 30-year loan, that's a 0.30% p.a. discount.

3. Don't get stung by unnecessary fees

While the interest rate is one of the factors that determine the cost of your home loan, fees matter too. As with any expense – the fewer the fees, the better.

And this really varies widely with lenders. Some lenders hit you with a $600 application fee or charge extra for some features. But there are some lenders that barely charge any fees at all. Why pay more when you don't have to?

4. Find a loan that makes switching simple

Refinancing a home loan means submitting a whole new loan application. While this is easier when you're refinancing an existing loan, it can still be a big process.

And some lenders make it easier than others. A lender with a simple, fast online application process can take a lot of the stress and complexity out of refinancing. And it means you can get approved faster and enjoy a lower interest rate sooner.

Unloan's application process is completely online and takes just minutes to complete thanks to its automated property valuations, digital credit checks and biometric identity verification.

5. Make sure your new loan has the right features

The right features can turn your home loan from one big debt into a great financial tool. If you have spare savings, an offset account can give you more control over your money while helping you save on interest charges in the long term.

If your loan lets you make extra repayments, you can also pay off your loan faster and save on interest costs.

Watch the Unloan Refinance Classic!

Learn more about refinancing with Unloan

^{^ Comparison rate is calculated on a $150,000 secured loan over a 25 year term. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.}

^{*Unloan does not charge any annual, application, banking, account, transaction, late or exit fees. In certain circumstances, you may be required to pay a Lenders Mortgage Insurance (LMI) premium. Learn more about why this is applied and how it works. Government fees may also apply. Learn more about government fees here. Your current lender may charge an exit fee when refinancing.}