As a FIFO heavy diesel mechanic, you've worked hard to build your financial position. Your unique work schedule and income structure might make refinancing seem complex, but understanding the approval process can help you access loan options from banks and lenders across Australia that suit your circumstances.
Why Consider Refinancing?
There are several reasons why FIFO workers look into refinancing:
• Accessing a lower interest rate - Market conditions change, and you might qualify for more favourable rates
• Change your loan term - Adjust your repayment period to suit your current financial goals
• Consolidate debts - Combine multiple debts into one manageable payment
• Releasing equity in your property - Access funds for renovations, investments, or other purposes
• Reduce loan repayments - Lower monthly payments can improve cash flow
• Fixed rate period ending - When your fixed rate expires, refinancing might offer more options
The Refinancing Approval Process
The application process for refinancing follows several key stages, and understanding each step helps you prepare properly.
Initial Assessment
Finance & mortgage brokers start by reviewing your current financial situation. This includes examining your existing loan amount, current interest rate, and remaining loan term. For FIFO heavy diesel mechanics, brokers who understand your industry can check eligibility for special lender policies designed for fly-in-fly-out workers.
Documentation Requirements
Lenders require specific documentation to assess your application:
• Recent banks statements (usually 3-6 months)
• Employment contracts showing your FIFO arrangements
• Tax returns and payment summaries
• Current loan statements
• Property valuation (if required)
• Details of any other debts or financial commitments
Your FIFO income structure requires brokers who understand how to present your earnings to lenders effectively.
Property Valuation
Most refinancing applications require a current property valuation. This determines how much equity you have available and influences the loan amount you can access. If you're looking to release equity to buy the next property, this valuation becomes particularly important.
Lender Assessment
Once your application is submitted, lenders assess several factors:
• Income stability - Your FIFO contract terms and employment history
• Debt-to-income ratio - How your total debts compare to your income
• Credit history - Your track record with previous loans and credit
• Property security - The value and condition of your property
Interest Rate Options
During the approval process, you'll need to choose between different rate structures:
Variable Interest Rate: Fluctuates with market conditions, offering flexibility but less certainty in repayments.
Fixed Interest Rate: Locked rate for a set period, providing payment certainty but less flexibility.
Many FIFO workers prefer fixed rates during uncertain work periods, while others choose variable rates when market conditions favour lower refinance interest rates.
Approval Timeline
The refinancing approval process typically takes 2-6 weeks, depending on:
• Complexity of your financial situation
• Lender processing times
• How quickly you provide required documentation
• Whether additional property valuations are needed
Working with experienced brokers can help streamline this timeline through their established relationships with lenders.
What Happens After Approval?
Once approved, several final steps complete the process:
- Formal loan offer - Review terms, interest rates, and conditions carefully
- Legal documentation - Arrange solicitor or conveyancer to handle paperwork
- Discharge preparation - Coordinate the payout of your existing loan
- Settlement - Complete the transfer to your new loan
Tips for FIFO Heavy Diesel Mechanics
Your unique work situation requires specific consideration:
• Timing: Plan applications during stable employment periods
• Documentation: Keep detailed records of your FIFO income patterns
• Communication: Stay accessible during the approval process despite work schedules
• Professional help: Work with brokers experienced in FIFO lending
Making the Right Choice
Refinancing isn't always the right move. Consider factors like:
• Exit fees from your current loan
• Application costs for the new loan
• How long you plan to keep the property
• Your current loan's remaining benefits
Experienced finance & mortgage brokers can help you weigh these factors against potential savings and benefits.
The refinancing approval process doesn't have to be overwhelming when you understand what's involved. With proper preparation and professional guidance, you can access loan options that align with your FIFO lifestyle and financial goals.
Call one of our team or book an appointment at a time that works for you to discuss how refinancing might benefit your specific situation.
