Cash rate stability, increased product choice and flexible mortgage interest rates have created the prime environment for consumers planning to renew their home loan. Competition in the mortgage market is certainly heating up.

Major lenders are slashing rates and releasing some enticing mortgage products in a bid to win over your business. As the banks continue to battle over market share, an increasing number of borrowers are realising the potential savings on offer should they decide to make the switch to a new lender.

The mortgage you have now may no longer be the most appropriate or most affordable option available. If you are unable to remember the last time you had a credit check, now may be the time to do so. Whether you are looking to drive down your mortgage balance or reduce your repayments, refinancing may be the ideal strategy. Refinancing refers to the process of switching from one home loan to another. This is a fast and flexible way to keep you abreast of your current financial circumstances and to ensure you are not paying any more than you should on your mortgage. While the federal government abolished exit fees for new loans earlier this year, there are some additional costs that you will need to consider before changing lender.

Switching home loans can carry additional costs such as new application fees, legal fees and mortgage insurance.

However, establishing which home loan best fits your needs can be quick and relatively stress free. Mortgage brokers can help ensure the transition from one home loan to another is as safe and hassle free as possible. Moreover, we can work with you to identify the most appropriate product to meet your needs as well as help you through the application process If refinancing is the way to go for you.

Source: Lending Services Victoria

Making the switch