How much is your old home loan really costing you?

Like another A Star is Born remake, sometimes it is good to boot out the old and welcome the new. You will experience renewed enthusiasm, big twists and turns, and Bradley Cooper or Lady Gaga – whichever takes your fancy.

When it comes to home loans, finding a new one could save you serious dosh. If you are sinking your money into a high revert rate or paying for a loan with features you do not need, you should look into making the switch.

Yes, it will take time and research. But even a small saving on your loan rate can put big dollars back in your pocket over the long term. Your local finance broker can assist you in finding the best-suited lender and its products with new features that you may require to suit your lifestyle and benefits. What are you waiting for?

The paperwork’s making you go gaga.

With these sorts of savings up for grabs, you have to wonder: why do not more homeowners refinance?

There is no avoiding the fact that home loan applications mean forms and admin. There will be lots of correspondences between yourself, the bank and other third-parties who are involved in the transaction. And look, for some of us, that sounds like heaven. But if you prefer to spend your down-time ‘socialising’ and ‘doing leisure activities’, the paperwork required to refinance a loan might be hard to prioritise.

Remember, you have done it before, for your first loan. Some of the original info you gathered might still apply and the rest should not take too long to find. However, you can rely on a local finance broker who is efficient to deliver and take care of all those workloads as part of their service on behalf of you.

Refinancing is easier than you think.

The thing is, a paperwork phobia is not a good enough reason to stay with your current loan. Anyway, sometimes you just need a really good pen to sign and a phone call to the local finance broker. Try it.

Though other fees may still apply, the banning of exit fees on variable home loans in 2012 made refinancing affordable. It can be especially budget-friendly with some low-cost operational lenders, where you will pay no home loan application fees (solicitor, valuation and agent fees may apply).

And because of the current competitive market, most lenders offer promotions to attract new customers with cashback offers and lower of exempted application fees when considering refinancing your existing loan.

You are not sure what you need.

Home loan products are always changing. What you signed up for ten years ago might not even exist anymore. Understanding the jargon and knowing what will work for you might seem overwhelming.

Advice is available. Your local finance broker will be able to walk you through the alternatives based on your circumstances. They can help you pick the home loan rates and added extras that will make refinancing worthwhile. Remember, the mortgage brokers have to act on your best interests as an obligation and deliver an exceptional service to you as a client.

Keeps it simple.

Some lenders may have multiple loan products with different features and some lenders, makes things easier by offering just a fewer option – your local finance broker has access to over 30 lenders to choose from. A finance broker should be able to demonstrate to you and see how much you could be saving, or check out for an apples-for-apples view of how much different loans will cost you.

And the mortgage brokers can help with comparisons, too. They can crunch the numbers on your behalf to let you see how much you could save by refinancing. Too easy.

Refinancing may seem complicated but there is help at your fingertips. Switching to a new product could mean a better rate and huge savings in the long-term, or new features to help you pay down your loan faster. Face your fear and buy a new ring-binder. It is worth the investment.

Please note there are terms, conditions, fees apply. Applications are subject to credit approval and lender's policies.

This article is prepared based on general information. It does not take into account individual financial objectives or needs and is not financial product advice. The original content was quoted from ME The Feed portal.

5 views0 comments