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A better mortgage - what does that mean to you
Getting a mortgage that works for you today and has the best possible chance of continuing to fit you over time is important as it is simply impossible to change mortgage either quickly or for free. Your next move should be considered carefully, options compared equally and the costs of making the switch worked out up front.
The most common reasons for making a change include:
- Your lender is charging too many fees and/or their interest rate is too high
- You are not confident that your lender is doing their best for you anymore
- You want to borrow more money, but your lender has turned you down
- You would like more confidence over interest rates and need to review your mortgage structure
- You don't feel you are getting anywhere and would like to find better interest saving strategies and structures
- Your mortgage is too complex or was not set up properly from the start
- Your lender has failed in providing the right level of service to you
Getting started
Write your reasons for wanting to refinance in a list and order them from most important to least important. Contact your current lender and get them to provide you with a written response to your concerns. Find out how much they will charge you to terminate your loan with them.
Once they have replied, you make contact with a few lenders or a mortgage broker to find out what's available out there. A good broker will help you understand some options that meet your needs and how they work. They may also make you aware of options you hadn't even thought about.
Tip: No matter whether you are dealing with a lender or a mortgage broker, make sure they provide you with a written response to your requirements, rather than relying on newspaper or over the phone quotes which can often quote rates that they have no intention of ever offering you.
Keep them at arms length
No matter whether you are dealing with a lender or a mortgage broker, you will save time if you avoid meeting with them until they are able to put their offering in writing. You should also avoid signing anything on your first meeting, or without a proper comparison of all your options.
Some other mortgage refinance reading
Although the mortgage refinance guide is written for investors, it includes valuable strategies and methods that will help you evaluate your refinance options even if you have an owner occupied mortgage. This article was published in Your Investment Property.
Click here for a confidential, over the phone chat with a Mates Rates mortgage broker if you would like to deal with a professional that is on your side.