Are you considering switching your home loan? Have you found a better deal that might be able to save you many years of further repayments?
Switching Home Loan? What to consider
Shopping around and being aware of market trends and offers is a great way to save you money. However before you make that final decision to move, make sure you understand the costs involved and be certain that the change will be positively beneficial to you in the longer term.
Work with a Mortgage Broker
Switching your home loan can be complicated and confusing so it pays to have someone working for you to make sure the process is smooth and timely.
The benefits of employing a Mortgage Broker are:
- there is no cost to you for their service – they are paid by the banks
- they shop around for the best rate for you based on your lifestyle and goals
- debt consolidation
- they manage the application process
- they are the primary source of all information
Ask for Information
Did you know you can request that all home loan lenders provide you with their key fact sheets which offer you details on the term of the loan in a fairly easy to read format? These fact sheets will help you:
- Detail the amount you will pay over the term of the loan
- Estimate what your repayments may look like with a rate increase
- Help you understand how to repay your home loan faster
- List all the fees and charges
Break Fees
If you are signed up to a fixed-rate loan and you’re considering switching your home loan, you may be charged a break fee.
You will need to touch base with your lender to find out how much the associated costs will be.
Early Exit Fees
While exit fees were abolished in July 2011, if you took out a home loan prior to this date, you may still incur charges.
You are best placed to contact your lender to determine whether you are required to pay any early exit fees.
Application Fees
Quite often, there are fees involved in setting up a new home loan. It’s a good idea to ask your preferred lender about these costs and then weigh up whether it’s better for you to move from where you are or stay with your existing partner.
Do your research
It certainly is in your best interest to keep abreast of interest rates and make sure your home loan rate is competitive.
Once you’ve established the fees and charges that you are required to pay, it will place you in the best position to be able to make an informed decision about the life of your home loan.
Use tools such as industry calculators to help you work through the best options for you.
Speak to Financial Scope Melbourne today to help secure your new loan.
Disclaimer: Your complete financial situation will need to be assessed before acceptance of any proposal or product.
Clint Thomasson
Clint has over 14 years experience in Financial Services working with major corporates including NAB, AMP, ANZ, and AXA. With a passion for Mortgage Broking, coupled with his outstanding interpersonal skills, Clint’s drive is all about matching your needs with the right financial solution. Whilst many businesses offer Finance Broking services, the difference you’ll find with Clint is his ability to listen, engage, retain knowledge and accurately match your requirements. Not only that, but he’s also a very friendly and genuine person with a great work ethic – you’ll have full confidence that he will deliver in a timely and highly efficient manner, every time.
