What is Mortgage Refinance?

November 9, 2023

What is Mortgage Refinancing?

Mortgage Refinancing is when you alter your current loan to arrive at better fixed and floating terms that work best for you. There are no right or wrong refinanced loans. It's a very personal choice and depends purely on what terms work best in your situation.


At times, Mortgage Refinancing may mean that you have to transfer your loan mortgage from one lender/bank to another. So you have the most favourable terms and conditions on your side at the end of the Mortgage Refinancing process

Generally, Mortgage Refinancing is available for any customer with a mortgage. But you could check your bank's / lender's terms and conditions to see if there is an initial time you need to complete before attempting Mortgage Refinancing.


Mortgage Refinancing is a very important process. Doing it right means you are closer to your financial goals and life's dreams. If you would like to seek the help of an experienced financial solutions consultant, then it's time we said Hello!

Here are a few reasons you should go for Mortgage Refinancing

  • Pay a lower interest rate

    It's simple. When your interest rate is lower, a higher percentage of your repayments are used for the actual loan. So if your current lender/bank is not giving you the lowest-in-market interest rates, you could switch to another for the sole purpose of negotiating a lower interest. As a mortgage broker dedicated to South Indians and Asian communities, you can count on us to leverage our relationships with several banks and lenders to help you, always keeping your interests in mind.

  • Home loan restructuring

    With home loan tenures being around 30 years, the right home loan structure could help you repay the loan sooner. In addition, if your current bank is trying to make money off your loan restructuring, switching to a more customer-centric bank could help you save thousands of dollars in interest payments and ultimately close your housing loan sooner. 

  • Access new home loan features

    Times are changing, and so are most new-age banks revising their loan products. Some of them offer credit cards with special interest rates. Others offer everyday accounts that help you reduce interest payments. Think of these features as new ways to lower your interest. With Kripa on your side, you will get to review a whole list of options of banks that offer such new features. 

  • Debt consolidation

    If you have several debts (hire purchases, car loans, outstanding credit cards, etc.), Mortgage Refinancing allows you to bring them all under one loan with a much lower interest rate. And reduce your total monthly debt repayments. 

  • Your bank refused you another loan!

    Different banks have different lending criteria. And it makes sense to give your business to the banks eager for your business. And this could be a reason to consider shifting your existing loan from your current lender/bank to another and get the additional funding you need. 

  • Avoid bank-levied fees

    Banks often charge several kinds of monthly fees - like debit card fees, account fees, etc. But most banks waive these fees for an initial period, usually a couple of years. Provided you are willing to transfer a loan to them. 

  • Time to switch from a non-bank lender to a mainstream bank

    Did you take your loan from a private lender? Are you stuck with high-interest rates and fees? Then, transferring your loan to a mainstream bank could swing the situation in your favour! 

  • Keeping your loan interest-only for longer

    You picked up a property because you thought it would be a good investment. And your loan is currently under the "interest-only" period (Yes! Such loans exist!). But the interest-only period is ending, and your monthly repayments will increase soon. Your team at Kripa can help you secure another interest-only loan with another lender/bank for up to 5 years!

Mortgage Refinancing Costs

While Mortgage Refinancing gives you several advantages, we at Kripa will also check to tell you if the advantages are more than the costs of Mortgage Refinancing. And if that's not the case, you can count on the folks at Kripa to tell you transparently. So what are these costs? We have listed them here. But don't think of this as a full and final list.

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Early Repayment:

Because you are repaying your loan in full before the initially planned loan tenure, your bank could charge you a Foreclosure Fee or Break Fee.

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Legal Fees:

Loans mean documentation and solicitors. This is another fee you will come across in the process of Mortgage Refinancing. 

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Administration / Discharge Fee:

Your current bank could charge such a fee for the paperwork required to close your home loan and enable you to make a transfer to another lender/bank.

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Valuation Cost:

While most modern banks do an electronic valuation of your property, there are cases when a lender/bank could ask for a physical valuation from a registered valuer.

The Kripa Financial Solutions Difference:

We go to multiple lenders for your loan
Lesser Rate of Interest
One-stop-shop from start to finish
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“My mission is to help first-time home buyers get into a home they love and can afford.”

- Simi Sethu, Mortgage Adviser

Expert advice -

at your fingertips.

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