The health of your existing loan should help you determine whether or not you should refinance. Even a small reduction in the interest rate can quickly bring dividends - particularly when we find a lender willing to waive routine charges such as establishment fees or ongoing monthly fees.
If you're smart, refinancing becomes a process of rejecting the loans that might look good at first sight but have hidden fees that can turn them into a long-term burden. While promising lower interest rates, some discounted home loans come at the expense of higher fees or locked in products that serve to push up costs
Compared to some of the new loans and lower rates coming into the market, your current home loan could perhaps be in better shape.
At Melbourne Finance Brokers we can help you assess your existing loan. Think of it as a health check - we will examine the loan for existing ailments (such as monthly fees, hidden costs including cheque books or ATM access, penalties for additional payments and so on), and also evaluate the long-term viability of the loan.
We will also help you determine whether your existing loan has features that you don't use or really need – they might not be relevant to your situation. Some features can unnecessarily increase the cost of the loan - so if they are sitting idle, it is money wasted.
If you existing loan is not in great shape the good news is that there are ways you can get a better deal, simply by refinancing to a more cost-effective option.
The cost of refinancing depends on the exit fees attached to your existing loan and the establishment fees imposed by the new lender. At Melbourne Finance Brokers we can ascertain what it will cost to pay out your loan early. Then it is a matter of weighing up how much you will save over the course of the loan.
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