Read This BEFORE Refinancing Your Home Loan

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See an amazing Home Loan interest rate, been introduced to your 5th Banking Consultant in 5 years.

There are many reasons why clients approach us wanting to refinance their home loans.  

So, we thought we’d share with you the 6 things to consider when deciding, should you stay or should you go.


Switching COSTS

Yes, unfortunately there will be costs associated with moving to another bank.

Potential fees for breaking your Home Loan,  perhaps an application fee at the new bank, an updated property valuation, and even lawyers fees for discharging your mortgage from one bank to another.

So before deciding to transfer it’s important that you have an idea of what all these costs will be for you.

It’s certainly no use moving banks for a lower interest rate that saves you $5,000 but it costing you $7,000 to do so.



A mortgage broker is a great impartial adviser when looking at refinancing you home loan.

Not to mention they (we) have many years’ experience in the lending industry and can help you make sure you’re getting a great deal. Best of all we don’t charge you a thing to do it.



If you’ve decided after getting the break costs & consulting a mortgage broker, that it is worthwhile changing banks, then the next step is to work out what your repayments are likely to be.

You may wish to add your break costs into the new loan, keep your loan repayments the same so you shorten the loan term, or extend your loan term to lessen the payments and free up your budget.

Your mortgage broker can walk you through all the different scenarios & work out what the best option is for you based on your personal financial situation & goals. Before you make a final decision.



Your current bank is very unlikely to approach you to refinance onto a lower rate because quite simply, they loose money.

However, if they know that you are considering switching banks then they may well try and retain your business and be open to negotiating a better rate.

The nice thing about this option is that you will avoid the costs of a lawyer being involved and the time involved with moving to a new bank.



If you decide moving to a new bank is definitely the best option for you, ask them how much they will contribute to the costs associated with refinancing. Many banks will offer a contribution to your legal costs and/or a waiver on your application fee.

If you have a mortgage broker acting on your behalf, they will negotiate this with the new bank for you so you definitely get the best deal on offer.



We always recommend notifying your lawyer of your intention to refinance ASAP to avoid any potential delays in the process. And, also share the lawyer’s details with your Bank & Mortgage Broker, it will save you time in the long run and will mean they can work together behind the scenes to make the transfer as smooth as possible.

Finally, your lawyer will arrange the discharge of your mortgage with the current bank & the new bank will prepare the home loan documents & mortgage instructions for you to sign at your lawyers.


So there are the our 6 tips for refinancing your home loan. If you have any questions or wish to work out if this is a good option for you please give any of the Focus Team a call Ph 0800 334 338

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