Changing your home loan might be the last thing on your mind, but if you’re willing to spend an hour or two researching your options, you could save thousands of dollars.
The key question you need to ask yourself is ‘can you get a better home loan package with another lender, or even without having to switch lenders?’
What can you save?
A good place to start is by comparing interest rates against some of the top variable options available at a financial comparison site, and you’ll get an idea of how much you could save.
To determine how much you could potentially save by switching to a lower interest rate, try RateCity’s mortgage calculator. But before you make the switch to another lender, discuss these rates with your existing lender – you may be surprised at how willing they are to negotiate to keep your business!
Also look at any savings you might make by consolidating other debt and switching to lower-rate finance options, because interest paid on multiple loans and credit cards can be costly and confusing.
Try our Mortgage Calculator:
Fees and charges
Fees and charges will depend on your home loan and circumstances, such as whether you are on a fixed or variable rate and how long is left to run on your contract.
You may also be faced with establishment fees when setting up a new home loan, as well as exit fees if you financed your existing mortgage before 1 July 2011. Exit fees can run into the thousands of dollars, so it’s certainly worth crunching the numbers before you refinance.
Refinancing home loans with no up-front fees:
Top tips for refinancing
Refinancing your home loan is not an easy task, but there are some steps you can follow to ensure you get the best deal:
- Know exactly what you want in a new home loan
- Know what has and hasn’t worked for you in your current home loan
- Look at the costs involved in leaving your current lender
- Understand what the new lender can offer you, including any add-on features
Borrowers are in a great position to bargain for a better deal, so take your time to do your research, compare home loans and negotiate your way to a better home loan package.