Reviewing Existing Home Loan Statements
Home loan statements are core documents on refinance and top up files. Reading them carefully ensures the new loan structure actually delivers the benefit the client expects.
Reading the loan structure
Start with the current balance, interest rate, remaining term, and repayment type (principal and interest versus interest only). Note whether the loan is fixed, variable, or split. For split loans each portion will usually have its own line showing its own balance and rate.
Identifying offset balances and redraw
Statements for loans with linked offset accounts show the offset balance separately. For simple loans with redraw, the statement shows cumulative extra repayments available as redraw. Both affect the funds available at settlement of a refinance and need to be factored into the funds to complete calculation.
Checking for fixed rate break costs
If any portion of the loan is currently fixed, break costs apply on early repayment. Contact the current lender for an indicative break cost quote before finalising the refinance strategy. Break costs can exceed $10,000 on large fixed balances and swing the commercial case for refinancing.
Key takeaways
- ✓Extract balance, rate, term, and repayment type for every loan portion
- ✓Identify offset and redraw balances for funds to complete calculations
- ✓Check for fixed rate portions and request break cost quotes
- ✓Confirm repayment type against the client serviceability calculation
How QualifyMate helps
QualifyMate reads existing home loan statements and extracts balance, rate, and repayment type for each loan, surfacing the key fields brokers need to assess a refinance scenario.
Key terms
Offset Account
A transaction account linked to a home loan where the balance reduces the loan principal used to calculate daily interest.
Redraw Facility
A loan feature that lets a borrower withdraw extra repayments they have made above the scheduled minimum.
Fixed Rate Loan
A home loan where the interest rate is locked in for a set period, typically between one and five years.
Related guides
Reviewing Personal Loan Statements for Home Loan Applications
How to read personal loan statements for home loan applications. Balance, repayment, end date, and consolidation checks.
Assessing a Refinance Application
How to assess a refinance application in Australia. Reasons to refinance, break costs, and funds to complete calculations.
Reading Bank Statements for Home Loan Applications
How to review Australian bank statements for mortgage applications. Salary credits, expense patterns, undisclosed liabilities, and red flags.
Reading Credit Reports for Mortgage Applications
A practical guide to reading Australian credit reports. Enquiries, defaults, repayment history information, and what lenders look for.
Ready to assess faster?
Assess documents for mortgages in minutes, not hours.