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By Chris Pullen, Blue Wave Finance Strategies


With interest rates as low as 1.98% on offer, many homeowners and investors are considering refinancing to score themselves a much better deal.

In fact, the 2020 PIPA Annual Investor Sentiment Survey found about 36% of investors would consider moving their portfolio to take advantage of interest rates just half a percentage point lower than their existing home loans.

Banks are certainly keen on new refinancing customers, but you do need to get your ducks in a row to make it happen seamlessly.

Blue Wave’s finance department processes refinance applications every week and there is a stark difference between borrowers who will get a tick and flick relatively quickly and those who will not.

So, here are four ways to refinance your loans more quickly:

  1. Tax returns

With the deadline for individuals lodging their tax returns themselves for the 2020 financial year now passed, it’s vital that you have your tax returns completed when refinancing.

Lenders require proof of your income when refinancing, which includes your most recent tax return for employed people, and often your two most recent tax returns for people who are self-employed.

If you don’t have this paperwork, your application can’t be processed until these have been completed, which can create unnecessary delays.

  1. Bank statements

Lenders aren’t as strict as they were a few years ago, but most of them do still require a thorough understanding of your expenses over the past three or six months.

Technology means your broker can access these on your behalf, but only with your approval.

Sometimes, refinancing applications languish because applicants don’t provide this approval, and that means it can’t progress any further either.


  1. Payslips

Refinancing applications still require payslips, just like home loans do. This is because the new lender needs to know that you can afford the ongoing costs of your new property loan.

Again, without these documents, your refinancing application can’t be submitted to a potential new lender, so it’s a good idea to gather this information up before starting the process.

Also, people get paid very differently, such as health professionals with overtime, FIFO workers with shift work and casual employees.

  1. Low expenses

There are certainly some great home loan rates on offer at present.

Savvy homeowners and investors are recognising that they can pay down their loans much more quickly when rates are in the low 2% range.

To give yourself the best chance of securing the best deals, though, you should ensure that your regular expenses are as low as possible.

This may mean consolidating credit card debt or reducing takeaway meals for a month or two, for example.

The ideal scenario is a refinancing applicant who has all of the necessary documentation available and has committed to reducing household expenses if needed.

That way, our finance department can process the application immediately – and before you know it, you’re paying much less on our home loans because of the once-in-a-generation interest rates that are currently on offer.

Contact the Blue Wave team on 07 5400 2549 to start saving dollars on your current loan.