Sometimes, people have no idea how much mortgage brokers really do. At Smartline Rockingham, we take care of every step of the process, from market research to settlement. With access to 28 different lenders and a total of more than 300 credit products, we use our knowledge of each lender to determine which ones are right for your individual situation.
When you sign the papers for your new home loan, you can rest assured that we have helped you obtain the loan that is suitable for you out of all those lenders and products.
But what if you want to go it alone? What if you want to do all of the work a mortgage broker would do on your own? Here is a list of five things you absolutely must do to maximise the benefits of refinancing your home loan.
You need to know what lenders are offering what products. Who is offering the refinancing deal that would fit your situation? Who is offering the most agreeable terms and conditions? The idea is to figure out the most appropriate home loan that would be available to you if you refinance.
Know Your Home Loan
What is the interest rate on your current loan? Is it fixed or variable? Are there penalties for paying off your loan early? Can you make larger payments if you want? Is an offset account available to decrease interest? What is the balance on your current loan? How much equity do you have in your home right now?
Did you know that more than 50% of Australians with home loans don’t even know their interest rate? Make sure you know everything about your home loan if you are going to try and find your best deal.
Make Sure it’s Worthwhile to Refinance
You will be taking out a new loan and ending your current loan. You will be required to pay an application fee, a break fee and a lot of other small fees that can add up if you don’t know what you’re doing.
The bottom line: you must make sure that fees don’t erase any of your savings if you refinance. You have to make sure you are actually saving money before you sign the dotted line.
Compare Fees and Interest Rates from Lender to Lender
This is important. You must know the rates each lender is offering. If you know what interest rates everyone is offering, you can use this information when talking to your lender. It’s important to know what fees other lenders are charging, too. Make sure you know the best terms and interest rates on the market.
If you know all about your current loan, which lenders offer the lowest rates and which charge the lowest fees, you can use all of your information to haggle. Contact your current lender and tell them you want to refinance and you want a lower interest rate and better terms. Make sure they know you are ready to “walk” if they don’t want to offer you a lower rate. You have to stay firm and not be afraid to go to another lender.
Do You Still Want to Go it Alone?
If you want to spend the time and effort to do all of this work while still working on your full-time job, congratulations. We are glad to have been of service.
However, there is a much better option: let the mortgage brokers at Smartline Rockingham do all of the work for you.
We already know which banks are offering the lowest interest rates and fees. We have dedicated our lives to mortgage broking; we can take a look at your current loan and know exactly what terms, conditions, fees and interest rate apply.
While this is a lot of work for you due to a steep learning curve, it is what we do for a living. We are experts at finding the right home loans with the most favourable fees, terms, conditions and interest rates.
To learn more or for a free consult, call Smartline Rockingham today: (08) 9527 1800.