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. Switching your home loan will be easier if you have no defaults on your credit rating or large personal loans and credit card debt. A debt consolidation loan loan may be used to streamline your finances.
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.
Contact us2. 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 one of our mortgage brokers to find you a home loan wich will save you most money comparing to your existing loan.
Mortgage Calculator3. 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.
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