In Australia, competition is fierce between the lenders who are fighting to keep their customers. Borrowers are looking to cut costs and save money, and in todays market that is definitely possible. Lenders are hungry for your business and you'll find that they are offering low fees or low interest rates that will maximise borrower savings if they decide to take the plunge and make the switch.
It's important that you shop around for the best product, as a common mistake borrowers make is refinancing with their current lender before checking what else is on offer.
When looking for a new loan you must consider the following:
Interest rate - even a small reduction in the interest rate can save you thousands over the term of the loan
Comparison rate - this is the true cost of the home loan. You might be on a low rate, but are you paying other fees?
Ongoing loan fees - make sure that you factor in all ongoing costs, so that you can determine the true savings the loan will afford to you
Discharge fees - it's important to check that any fees associated with exiting your loan are disclosed to you so that you know how costly exiting your lender will be
Features and facilities - with the range of choice in the market it's important to check that you are offered all the works at no cost or low fees
Customer support and service - make sure you choose a lender that is willing to fight for your business. You want to be more than a number, and there are lenders out there that offer such support and service - don't settle for second best!
The money you pay upfront by switching could be gained back quicker than you think if you move to a home loan with a lower interest rate and fees.
The big thing to always remember is that you have a choice. Lenders are trying to compete in new ways as non-bank institutions enter the market and are offering some of the lowest interest rates and full featured home loans that undercut the major banks.
To discuss your scenario and how a cheaper interest rate can benefit you, contact our team on 13 10 90.
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