Switching home loans - a step-by-step guide
With the uncertainty of future interest rate hikes, the cost of living going up, petrol prices at record highs, now is the time to revisit your home loan to see if it is still the best deal for you, or whether you can do better and save more of your hard-earned dollars.
Everywhere you turn, the talk is of finances and how to make ends meet. Even the treasurer Wayne Swan is urging unhappy consumers to vote with feet and switch loans in order to get a better deal.
Things to consider when switching home loans
1. Shop around and see what’s in the market. RateCity.com.au is perfect for this.
2. If you are not satisfied with your current lender, talk to them, with the aim of striking a better deal - better service, a lower interest rate or ongoing fees.
3. Think seriously about whether it is worth it to switch loans to another institution.
4. Fees you could incur by switching your current loan include early termination fees and, in the case of a fixed loan, break costs could be significant so look into it.
5. Fees you could incur with a new loan include any upfront loan costs, such as establishment fees, valuation fees and stamp duty.
6. Don’t forget to factor in the time it will take to pay out your existing loan and settle into the new arrangement.
7. After having carefully considered all the ramifications, an educated decision can be made on whether you really would be better off switching to a new home loan.
How do I compare home loans?
RateCity.com.au is the best website to shop for all home loans, as well as most other financial products. At RateCity.com.au, you can use expert comparative data from CANSTAR CANNEX, Australia’s leading financial research and ratings firm. CANSTAR CANNEX has analysed and evaluated hundreds of financial products to award five stars to only the very best. The CANSTAR CANNEX star ratings go much further than just looking at interest rates. They also take into account important features so you can be confident you are getting the best product.
Use our easy search tools to compare home loans at RateCity.com.au.
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