Key Things To Consider When Switching Mortgages calculator
Many Australians would feel that switching mortgages is a very simple procedure, as all you need to do is compare the interest rates on home loans. But we would like to say there is much more to it apart from comparison. Many other factors like the introductory rate , ongoing fees, set up fees and also the track record of the lender on maintaining cost effectiveness also comes into play. You can use a mortgage switch calculator to understand better. Check a few of the key things that need to be considered before switching mortgages.
Is it possible to negotiate with the current lender?
If it is possible to talk it through with your present lender regarding reducing the rate of interest it would save a lot of fees and additional costs. Your mortgage broker can initiate the talks with the lender. So this could be the best approach.
Are you eligible to switch your loan?
Firstly you will have to check if you are eligible to switch your loan to a lower rate of interest. You can check this through the mortgage switching calculator. You can consider switching if there has been a significant increase in your salary, if the credit score has gone up or the property value for that matter as well.
Will the refinance cost be lesser than the savings of the Interest Rate difference?
There are chances that the lenders might just negotiate with you on the hand and offer you rebates or cash backs for refinances. So, before taking such a major decision, it is better to consult the mortgage broker as they would know your requirements and any kinds of loopholes in the system or the procedure.
How To Switch Mortgage
You can check out the process to switch the mortgage in Australia.
- Check for a better deal with the present lender
- The loan tenure needs to be negotiated
- The mortgage insurance of the lender must be weighed to that cost
- The mortgage switch needs to be thoroughly compared
- The extra charges, the fees, and any kind of additional costs needs to be compared