Home Loan Mortgage
With home loan interest rates at the lowest seen in years, homeowners are wondering if it is a good time to switch over to a fixed rate. Switching mortgages to lock in a lower rate is an assessment that should be considered thoroughly. Take care to follow RateCity's four golden rules before you make a formal decision.
- Add up all costs to see how much you need to pay to settle your current loan and sign into another one. Break costs and deferred establishment fees can be expensive. Take time to do the math as the outgoings could easily outweigh any savings gained.
- Understand the new mortgage you're signing into. Does it have a honeymoon rate or introductory period?
- Make sure they deliver accurate calculations on the term of the home loan.
- Negotiate to get a better deal with your existing lender first. If they aren?t prepared to accommodate your needs look elsewhere for a better deal.