Refinance Analysis

Purpose for this analysis is not to compare existing and proposed loans on $ for $ basis but to give perspective how would existing liability marked to be refinanced stack up against recommended scenario with current lenders' offers.

Given that any variances in loan parameters effect the calculated result the system counterbalance in the background two most important components, such as loan term and loan amount.

The reason behind this logic is that it is highly expected for existing loan to have shorter remaining term than proposed loan and comparing the costs or savings on loan repayments e.g. over 25 years for existing loan and 30 years for proposed loan would throw off the table any analysis.

For that purpose, loan term of any existing home loan liability marked to be refinanced is equalised to the proposed loan split #1 value.

Depending on the scenario that value can be extended or cut shot for matching purposes. Adjustment is methodically applied to loan term component of the last repayment in the sequence until both, proposed and existing, have the exact same value. It could potentially totally shut down the Repayment #2 and/or Repayment #3 for calculating purposes based on the scenario.

It is similar problem with loan amount since proposed loan can, more often than not, contain some cashout and/or equity release component on top of the refinance amount, so again, comparing costs or savings of different loan values, e.g. $900,000 for existing refinancing loans and $1,000,000 for proposed loan, would not give required perspective.

The system levels up total proposed loan amount, with all splits included, with total outstanding balances of refinancing home loans.

Adjustment is methodically applied to loan amount component of the last repayment in the sequence until both, proposed and existing, have the exact same value. Based on the scenario for the calculating purposes the system could potentially shut down any split outside of SPLIT #1.

Parameters for this section are carried over from Liabilities tab and mortgage type loans marked to be refinanced. Declared repayment is ignored and system calculated based on Balance, Interest rate, Repayment type and Rate type. Each specific mortgage liability is considered as single split loan. Total remaining ongoing fees are out of the system scope, therefore are required to be manually included in analysis.

Parameters for this section are carried over from Recommended product on Compare products tab.

Each split is generated separately with the Total ongoing fees included only in the first split section.

Intention for this section is to show difference between mortgage liabilities marked for refinanced and Proposed loan figure declared on Funding Worksheet tab.

Shows a breakdown of all costs outside of loan repayment for this transaction.

There are some are system generated values as they can be sourced from the product specs while others that are outside of the system scope are required to be manually entered for calculating purposes.

Intention for this section is to show difference between mortgage liabilities marked for refinanced summed up with refinance costs and Total loan amount on Compare products tab.

Savings over proposed loan term is difference between all ongoing fees and monthly repayments compared between EXISTING LIABILITIES vs PROPOSED LOANS.

Savings over the loan term with additional monthly repayment is figure representing potential interest benefit gain with that specific contribution. There is also an indicator how much faster loan would be repaid with that additional monthly repayment. For the calculation purpose due to possible variances to proposed loan splits additional contribution is attributed only to first split and

principal and interest loan component.