Home loan switch - is switching home loan good for you?
A home loan is the largest financial commitment for most of people.
As the interest rates change so does your monthly
How a home loan switch can save you thousands
of dollars in interest?
Before you decide to switch
your home loan to another lender you should consider all potential
costs. Your current home loan provider can charge you exit fee and
your new home loan provider will most likely charge you loan establishment
fee. You have to work out if your new, reduced interest rate home
loan will save you enough money to cover your exit fee and your
new loan establishment fee. The lower those fees are the more money
you are going to save by switching your home loan.
3 steps of home loan switch:
1. Find a best lender by shopping around
The first thing you could do is to inform your current mortgage
lender that you are looking for a better deal. Normally, they will
try to offer you an alternative loan arrangement rather than losing
you as a client.. If you accept one of their other loans you will
save large amount of money in loan switching costs. If your current
lender is not flexible enough, contact other lenders and start comparing
their home loans. All lenders offer loans with different combination
of interest rates, features and fees.
2. Compare interest rates, loan features and fees
The best way to do this is to draw a table with your current loan
interest rate, fees and features and all other home loans on offer
and compare the best home loans. If this task is taking too much
of your time you can contact a mortgage broker to find you a home
loan wich will save you most money comparing to your existing loan.
3. Work out the home loan swtching costs
Work out what fees you will be charged if you change loans: Add
the exit fees of your current loan to the start up fees of your
new home loan. This will give you the total cost of your home loan switch.
What is home loan switch ?
A home loan switch is a process
of refinancing your existing home loan with another lender (bank)
offering lower interest rates and better loan features. The goal
of home loan switching is to lower monthly repayments and save money.
When the loan initially was taken it may have been the best option.
However due to change in peoples circumstances or because there
are much better home loan deals available now, it may be time to
reconsider ones options.
Switching your home loan will be easier if
you have no defaults on your credit rating or large personal loans and
credit card debt. A debt consolidation loan loan may be used to streamline your
Where can I find a mortgage broker to help with my home loan switch
We specialise in home loan switching.
Contact one of our consultants to help you optimise your home loan
and get a better deal saving you thousands of dollars in interest
rates and repayments.
Switch your home loan and save.