It’s generally agreed that homeowners should review their mortgage every two or three years to see whether their home loan is still working in their favour. During such a review, it may become apparent that your home loan is no longer working for you, or that a better deal could be available and at this point it may be a good idea to refinance your home loan.
Refinancing can be a daunting prospect: it was stressful enough to get a home loan the first time, so why would you want to put yourself through that process again? Refinancing your mortgage has the potential to save you thousands of dollars over the life of your loan, making it really worth the effort involved in getting expert help.
One approach to refinancing is simply to approach your existing lender and ask them for a better deal.
While this tactic is always worth a try, you are unlikely to receive a competitive offer, with the best rates reserved for new customers only. A mortgage broker, on the other hand, is an impartial adviser who can work with you to achieve your personal financial goals and present deals from a range of different lenders. There are many advantages to working with a broker; let’s have a look at just a few:
1. Easy communication. Most people get their home loan from banks, which are notoriously bureaucratic organizations. It can be tricky to get in touch with the right bank employee, and your convenience is rarely their main priority. Your paperwork usually has to go through a variety of different channels and it can be difficult to track your information. By contrast, a mortgage broker will deal directly with you, put your needs first and communicate effectively, without the burden of a chain of middlemen.
2. A broker won’t reject your case out of hand and can deal with complex or tricky situations, like if you are self-employed. Too often, a bank will reject an application that they don’t see as ideal. Rather than dismissing you, a broker is usually willing to make your situation work and will investigate a range of possible solutions to suit your financial situation. This is especially beneficial when refinancing as the financial details can be particularly complex.
3. A broker won’t try to get you to stick with your old loan or choose a specific lender. An existing lender will often resist any attempt you make to refinance or change lenders, as they are making a profit from your mortgage. While a broker will usually receive a commission from a lender, he or she should be neutral, putting your interests ahead of any particular lender.
4.The paperwork involved in refinancing a home loan can be complicated and tricky for a layman to deal with. A broker will take care of this for you, making the process as stress-free as possible.
5. Apart from any practical details, a broker can help you to determine if refinancing is actually right for you and what kind of loan is best suited to your financial situation.
Are you thinking about refinancing your home loan? Contact our accredited mortgage specialists for more information on the options available to you and how you could save thousands on your home loan.