What to Expect During Your Refinancing Approval Process

As a plasterer, you've built a solid career in the trades, but when it comes to refinancing your home loan, the application process can feel like uncharted territory. Understanding what happens during the refinancing approval process can help you prepare properly and increase your chances of accessing a lower interest rate or improved loan terms.

Why Plasterers Consider Refinancing

Many tradies in the plastering industry choose to refinance for various reasons:

• Accessing loan options from banks and lenders across Australia that offer improved rates
• Releasing equity in your property for business expansion or personal needs
• Consolidating debts into one manageable payment
• Taking advantage of opportunities to reduce loan repayments
• Securing finance to release equity to buy the next property
• Switching from a variable interest rate to a fixed interest rate for stability

With your fixed rate period ending, now might be the perfect time to explore what's available in the current market.

Understanding Your Financial Situation Assessment

Lenders will thoroughly examine your financial situation during the approval process. As a plasterer, you'll need to demonstrate your income stability and capacity to service the new loan amount. This involves:

Income Verification
Your income as a tradesperson will be assessed through bank statements, tax returns, and potentially profit and loss statements if you're self-employed. Lenders want to see consistent earnings over time.

Credit History Review
Your credit score and borrowing history play a crucial role in determining your eligibility for refinance interest rates. Any defaults or missed payments will be carefully considered.

Property Valuation
The lender will assess your property's current value to determine how much equity you have available and the loan-to-value ratio for your new loan.

The Streamlined Application Process

Working with mortgage brokers who understand the trades industry can provide access to a more streamlined application process. Here's what typically happens:

1. Initial Assessment: Your broker will conduct a home loan health check to identify potential opportunities
2. Document Collection: Gathering required paperwork including bank statements, income proof, and identification
3. Lender Selection: Your broker will check eligibility for special lender policies that cater to tradies
4. Application Submission: Formal application lodgement with your chosen lender
5. Assessment Period: The lender reviews your application and may request additional information
6. Conditional Approval: If successful, you'll receive conditional approval subject to final checks
7. Settlement: Final approval and loan settlement process

Exploring Your Loan Options

The refinancing process opens doors to various loan structures that might suit your circumstances:

Interest Rate Options
You can choose between variable interest rate loans that fluctuate with market conditions, or fixed interest rate products that provide payment certainty. Some plasterers opt for split loans combining both options.

Loan Term Flexibility
Refinancing allows you to change your loan term. Extending the term can reduce monthly repayments, while shortening it can save on total interest costs over the life of the loan.

Access to Equity
If you've built substantial equity in your property, refinancing can unlock these funds for:
• Business equipment purchases
• Vehicle upgrades for your plastering work
• Investment opportunities
• Home renovations that add value

What Lenders Look for in Plasterer Applications

Lenders recognise that plasterers often have unique income patterns and business structures. They'll assess:

• Consistency of work and client base
• Seasonal variations in income
• Business registration and licensing
• Insurance coverage
• Equipment ownership and business assets

Documentation You'll Need

Preparing your paperwork in advance can expedite the approval process:

• Recent bank statements (typically 3-6 months)
• Tax returns and notices of assessment
• Payslips if you're employed
• Business activity statements for self-employed plasterers
• Current loan statements
• Property rates notices
• Insurance documentation

Timeline Expectations

The refinancing approval process typically takes 4-6 weeks from application to settlement. This timeframe can vary depending on:

• Complexity of your financial situation
• Lender processing times
• Property valuation scheduling
• Completeness of documentation

Making Informed Decisions

Refinancing isn't just about securing a potentially lower interest rate. Consider the total cost of switching, including:

• Discharge fees from your current lender
• Application fees for the new loan
• Valuation costs
• Legal fees
• Ongoing fees and charges

Ensure that any savings from improved loan options outweigh these switching costs over your intended loan period.

Refinancing can provide access to improved loan terms and potentially significant savings on your mortgage repayments. As a plasterer, working with brokers who understand the trades industry ensures you can access loan options from banks and lenders across Australia that recognise the value of skilled tradies.

Call one of our team or book an appointment at a time that works for you to discuss your refinancing options and start your journey toward improved loan terms.