Home loan switch - is switching home loan good for you?

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.

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.