Refinancing FAQ

Can I get a mortgage where I pay less than I’m paying now?

With lenders adjusting their rates outside of the reserve bank now is a great time to shop around check that you have the right loan for your needs, and an AFG broker is a great starting point. It will depend what interest rate you’re currently paying, what type of home loan you have (e.g. fixed, variable, interest only, line of credit) and what features you want in your loan.  Speak to an AFG broker who can quickly explain your options.

Can I consolidate credit card or other debts into a home loan?

This is one of the reasons many people refinance.  The advantage is that you pay a much lower interest rate on a mortgage than for most other forms of debt – e.g. credit cards, overdraft facilities, personal loans etc.  Providing you have sufficient equity in your property, you may be able to consolidate all your debt on a home loan. If you take this option though it is important to make sure you maintain your repayments at their current level or you could end up paying more over a longer period of time. Speak to an AFG broker to discuss your personal needs.

How much money can I borrow?

We’re all unique when it comes to our finances and borrowing needs. Get an estimate on how much you could borrow with our clever loan options tool.  Or contact an AFG broker who can help with calculations based on your circumstances.

How do I choose the loan that’s right for me?

Our guides to loan types and features will help you learn about the main options available.  There are hundreds of different home loans available, so contact an AFG broker who can recommend the right loan(s) for you.

How often do I make home loan repayments – weekly, fortnightly or monthly?

Most lenders offer flexible repayment options to suit your pay cycle. Aim for weekly or fortnightly repayments, instead of monthly, as you will make more payments in a year, which will shave dollars and time off your loan.

What fees/costs are involved in switching mortgages?

Penalty fees could apply if you’re paying off your current mortgage early, especially if you’re exiting a fixed home loan.  But these may be offset by repayment savings when you switch home loans.  Contact an AFG broker to discuss which fees would apply in your circumstances.