Although it may only seem like yesterday you took out a home loan, there’s never been a better time to switch to a new loan or lender, with interest rates so low what are you waiting for? Seriously what are you waiting for?
If it’s been at least five years then there’s a great possibility, no there’s a definite possibility you’re no longer getting the best deal. Lenders are always trying to come up with new ways to compete for your business and are always adding new features or lowering rates to get you on board so it’s a great idea to have a look at what else is out there every 4-5 years or better yet, team up with an experienced Mortgage Broker and they will normally look at your options every few years to make sure there’s not a better deal out there for you.
Whatever your motivation might be, a desire to free-up cash, consolidate debts or enjoy the freedom of reducing your monthly repayments. Refinancing can prove to be a sensible way to stay on top of your finances.
Here are a few things to keep in mind and help you along the way.
Research, Research, Research
Switching lenders can be a bit daunting for some, but the more research you do, the more confident you’ll be that you’re making the right choice. Read all the terms and conditions carefully, understand what fees you may be up for and also look into the lender and make sure they are equipped to look after your needs.
One of the best things to do is read other customer reviews, websites like productreview.com offer you the opportunity to see what their customers really think of their product or service, but remember no company is going to have 100% positive feedback, we all make mistakes it’s what the company did to fix the mistake is what is important.
Make sure you have the most competitive rate on the market is imperative to keeping your home loan costs to a minimum and let’s face it, the money is better in your pocket rather than your lenders. Comparison websites like Canstar offer you a quick and easy way to search for potential lenders, you can search by cheapest comparison rate and even search by star ratings which is really important to make sure you’re not only getting a cheap rate but also the product also has the features you will need..
Review your home loan every 4-5 years is a great practice to ensure you’re still getting the best deal for your individual needs. Talk to your current lender about any new offerings they might have, but also do your research across the whole market to find out if there are any new features on offer since you last took out a loan. My tip: get a Mortgage Broker to do this for you, most Mortgage Brokers will schedule your Home Loan check-ups and will normally contact you once there’s a better deal for you, and the best thing is it doesn’t cost you a cent.