Current Australian interest rates are sitting at record lows, so now is the perfect time for mortgage holders to review their situation and make sure they are still in the right product for their requirements.
Sitting down and reviewing your mortgage may expose many products available that are more suitable for your current needs, and may save you thousands of dollars in repayments across your loan’s lifetime.
Say for example, you currently have a $300,000, 30-year mortgage with an interest rate of 5%, if you were to review your mortgage and ultimately shave 25 basis points from your interest rate, you could save yourself over $16,000 in interest over the life of your loan.
It’s integral that before you look at refinancing your mortgage, you broadly research options available, and this includes looking beyond the interest rate alone. Many borrowers will immediately look at refinancing with a lender boasting the lowest interest rate, but making noise about having the cheapest interest rate doesn’t mean the loan product itself is overall going to cost you less, nor does it mean it is the best product suited to your needs.
It is important to do your homework, and to be aware of various fees that lenders may charge when providing a loan. Here are some of the fees that that lenders may charge:
- Application fees
- Monthly account fees
- Redraw fees
- Additional repayments fees
- Rate lock fees
- Break fees
Please remember, you don’t need to work through all of this on your own!
As professional mortgage brokers, we will be able to tell you the real cost of a loan, taking into account all the fees and charges that you will incur as the borrower. We can walk you through all your potential refinancing options with access to a wide range of lenders and products they offer.
Now is an excellent time for us to perform a free home loan health check for you, and we will determine if your current mortgage is still the most suitable product for your needs.
To find out more about refinancing and your possible options, contact us on 02 9358 4855.