The first step for anyone looking into refinancing is to determine if it makes financial sense at all. This is a matter of comparing repayments on your current loan against those of a potential new loan. Primarily, you want to take into account which has a better interest rate and monthly fees for you. But at the same time, consider all the additional fees that you may incur both on starting the new loan and on ending the current one early.
Pay close attention to the features of the new loan when compared to the current one. Interest rates might be good, but if everything else about the deal is lacking, then you should reconsider. That said, this is an opportunity to review your current loan and see if it could be improved.
If you do decide to opt for the new loan (new bank), the process for refinancing should be the same as when you applied for the initial loan in the first place. Make sure you prepare all the necessary documentation that was required of you when you first applied.
Bank documentation can be quite confusing so, If at any point you are unsure on how to proceed, you should consult your mortgage broker (Contact me if you need a reliable broker) so they can arrange all this on your behalf. Otherwise, you will need to inform your current lender of your decision, and they’ll make the arrangements to forward the loan to the new lenders. Then you simply have to review and complete the documentation on the new lenders side to finalize everything.
A mortgage isn’t something you enjoy researching or changing, but if your current situation could be improved, or needs adjusting due to circumstances, then don’t be discouraged.