In the old days, getting a mortgage meant committing 25 or 30 years of your life to one bank. That’s almost unfathomable now, and with good reason.
It’s important to check-in and sees if you’re getting the best deal. Refinancing your home loan can be a great way to save money: you can health check it land a better interest rate, switch up your product to suit your needs or use your existing equity to change up that old kitchen or purchase your next property.
But bigger isn’t always better – that’s why we have puppies and mini doughnuts. If you’re thinking about switching, take the opportunity to fall in love with a smaller lender.
Smaller banks mean bigger savings.
Little guys don’t have the costs associated with a large branch network, so they can afford to offer highly competitive rates without scrimping on loan features.
Before you start, check out the potential cost to refinance your loan. There are various charges you could be up for when you pay out early and set up a new loan. Get in touch with a local finance broker to review and refinance to save money.
Find a better interest rate – and personalised service.
Rates may have changed since you signed on for your mortgage. If you have a fixed-rate home loan, you could find a much better comparison elsewhere. Lenders are always looking to attract new customers, and you might weigh up home loan switch offers or the benefits of introductory rates.
But a small bank takes it one step further. As well as enjoying enticing offers, small lender customers know they’re more than just a number. If you are keen on the great rates, contact for the independent local mortgage broker who understands your needs.
Make your money easier to manage.
Refinancing can be a chance to lock into a competitive fixed-rate and enjoy more certain repayments, which makes your loan easier to budget for.
Or, if there’s a bigger expense you’ve been planning for, like a holiday or new car, refinancing can give you access to the equity in your home.
A mortgage broker can help you understand the best option for your situation.
Enjoy the features you need.
As our lives change, the sort of loan features we need can alter dramatically.
A first homeowner may not have much scope initially to save beyond their repayment, but as time goes on the interest-trimming benefits of an offset account may appeal. Or, you might be an investor who wants to expand your portfolio with helpful redraw options.
Even if your circumstances haven’t changed, it’s worth taking a look to see which innovative features you could take advantage of. Home loans are becoming more flexible all time, and there may be something exciting waiting on the other end of the application.
Pay your home loan off sooner.
A small bank can offer a tailored home loan solution. You could also take the opportunity to consolidate some debts folding them into a single low rate loan. This can lower the rate you pay across all your debts to provide valuable savings on repayments and free up extra cash to pay off your loan sooner.
Having a better product may free up the extra dosh to pay down your loan faster and save heaps on interest.
Choosing a smaller lender can make refinancing your home loan a dream. Find out what you need to do before you start, then speak to a mortgage broker for a tailored path to success.
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 initially published on 29 March 2019 online at https://www.mebank.com.au/the-feed/why-you-should-refinance-with-a-smaller-lender/?utm_source=shareme6&utm_medium=email&utm_campaign=shareme&utm_content=shareme6_REFI