With all the attention in the media lately with regards to bank mortgage exit fees, and some banks reducing or removing their mortgage exit fees, it may be a good time to consider comparing your current home loan.
It is always a good idea to know the important details of your home loan, like the current interest rate or if there are any monthly or annual fees with your mortgage. There are some real difference’s between the banks at the moment, so you may be able to save some money by comparing your current home loan. You also may have an older home loan, a mortgage that is not offered by your current lender anymore, and you may be paying a premium for not comparing your home loan.
You may be even able to save some money simply by switching to a different home loan with your current lender. I will give an example of a customer I recently helped, and saved them some money with there current lender. The customer had a $320,000 home loan, which they have had for around 5 years. There was no monthly fee, but the interest rate was 7.58%. This was a home loan that is still offered by there current lender, and used to be a great home loan, but has become redundant, especially since the credit crunch. By looking at all options, we switched there current home loan to different home loan with there current lender. The new interest rate was 7.1%, and no monthly fee. The only fee the lender charged to change the home loan was a $300 switch fee. This was a considerable saving for the customer, the interest charge difference was $128 per month. This equals $1,536 per year.
A massive saving, simply by giving me a call to compare there home loan. You can contact me anytime to compare your current home loan. One advantage to using a mortgage broker, is that generally, we have many different lenders that we deal with, so we can compare your mortgage across a variety of different lenders. As with the above example, you may even be able to save a lot of money with your current lender.
When comparing your home loan, your mortgage broker should compare things like –
The cost to change your loan (if you are changing with your current lender, like a switch fee)
Mortgage exit fees, if you are refinancing to another lender.
Government charges (like mortgage registration fees) if you are changing lender.
Application fees on a new home loan with a different lender.
If your loan is mortgage insured, the mortgage insurance cost.
These factors will help you decide whether or not to consider changing your home loan. Knowledge is power, so learning about these may save you money.
As a mortgage broker, I get paid commission by the bank. I do not charge a fee to compare your current home loan, so it will cost you nothing more than a little bit of your time to compare your current mortgage. You can contact me anytime to discuss your needs, my service is obligation free too.
http://www.mortgagefacts.com.au/
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