Where to start? As an accredited finance broker I can help weigh up your options.
Refinancing a mortgage can be daunting. Fees, fixed versus variable interest rates and monthly charges all need to be considered. The right refinanced loan could help you pay off your mortgage faster and for less, clear unhealthy debt or help you upgrade and add value your home, all of which are steps in the right direction.
The reason why most people change lenders is that their lender is charging a higher home loan rate than they see advertised elsewhere. There may be a penalty clause in your current home loan, meaning you may need to pay a discharge fee, but it could still be in your financial interests to change.
When shopping around it is always important to look for the comparison rate of a product. A comparison rate is essentially the true rate, taking into account the fees and charges you will pay on the loan. So even though you see a lower rate it doesn’t mean the repayments are less.
You can walk away from most mortgages, although penalty fees sometimes apply, so it's always best to check up front with your lender.
If you’re concerned about rising rates, perhaps you should consider a fixed rate home loan, where repayments are fixed for a period from 1 to 5 years. Some lenders charge more than others for various reasons, some pay different amounts for the money they on-lend to you, have different overhead structures and different profit expectations.
All these factors affect how much they charge to lend people money. So to check out your options give me a call and lets talk. I can review your situation obligation free and let you know the best options for you.