Having helped many customers refinance their mortgages to better providers, we have pinned down top 5 mortgage refinancing tips;
1. Research the cost
Make sure that you research the costs involved with the current bank. Sometimes there are early exit fees and break costs involved. Having said that it’s a common practice for most major banks to run cash back offers to help cover some of the refinance costs. Generally, if your loan is fixed the costs involved are higher compared to a variable loan.
2. Find the right offer
Make sure that you shop around for the right offer. Don’t settle for the first appealing offer that comes your way. The competition is pretty fierce between the banks and institutions. As a result, you should be benefiting. A good tip is to go by the comparison rate (this includes fees and charges) as opposed to the variable rate.
3. Don’t settle for the advertised rate
Most banks and lenders don’t go by the advertised rate. This is published as a guide. When you are offered a rate it’s not a bad option to keep negotiating further. Keep in mind that you don’t lose anything by asking for a better rate.
4. Fixed or Variable
There are some great offers out there but it’s important to make an informed decision. Plan for the next few years and decide if you want to fix the loan or do a part fixed and part variable.
5. Packaged vs unpackaged
There are pros and cons with deciding to package your home loan. Some of the benefits include new credit cards and debit cards (which means your direct debits need to be changed). But on the other hand, a package will also entitle you to some great discounts on other products and a discounted mortgage rate too.
This blog post has not taken into account your objectives, financial situation or needs. Due to this, before acting on any general advice/information in this communication, you should consider whether it is appropriate to your objectives, financial situation or needs.