Refinancing can save more if you chose a deal that has a lower interest rate or monthly fee. It can also bring you savings in your banking transactions and even rewards like the cancellation of your monthly account fees if the balance of your home loan is greater than $50,000.

Refinancing can also give you flexibility to make additional repayments whenever you feel like it. This can trim the length of your loan term and bring you significant savings. When your refinanced loan approved, you may have to pay additional settlement fees, stamp duty, establishment fees, exit fees and an additional mortgage registration fee.

To have a problem-free refinancing application, you must first know all about your present home loan. Listing its rates, features and additional fees so that you can use them for comparison.

Then, you must have a look at present home loan features and decide which of these do you really need. Determining your needs will help you guarantee that you are not paying a high interest rate for the features that you will not need or will not use.

Next, talk to a mortgage broker about consolidating debts if you have multiple debt accounts. After which, you can calculate the exit fees of your current loan and the establishment fees for your new loan and find out which one will give you more savings.

Never send too many refinancing applications to different lenders for this can have an negative effect on your credit rating which most lenders use in deciding whether you are capable of handling the loan or not.

It is important that you complete the application form of your refinancing process honestly. You must cross out sections that are not applicable to you. If you have questions or problems in answering certain sections, do not hesitate to contact your mortgage lender.

Given the strength of the economy many, investors and analysts thought it was only a matter of time before the Reserve Bank of Australia (RBA) would have to take rates further.

In a statement after the banks monthly meeting, RBA Governor Glenn Stevens said that lending rates were now around average and the rise from 3 percent since October was a significant adjustment.