The simplest reasons why you would want to switch your home loan is because there could be a better home loan product available on the market, your interest rate could well be beyond your reach, your current lender may be averse to lending more money in addition to an existing loan or you may want to get an investment property.
It is always wise to seek expert advice from a Financial Adviser or qualified Broker to determine what option works best for your financial circumstances. Never assume that speaking to an expert will necessarily end up making you make some big decision about switching providers or changing product features. What these advisers and brokers do is they make an assessment of your situation and offer you non-obligatory advice on what you should consider doing next.
You might find in some circumstances that as a result of professional consultation, you end up realising that the deal you currently have isn’t too bad after all and that you have little to no need to make the switch. But such occurrences are incredibly rare. Generally speaking there is always a better product available in the market than the one you currently have.
If one did decide to make the switch, the first thing they would have typically considered is whether or not there are any exit fees involved. Luckily the fee was abolished a couple of years ago in Australia, so that gives you some mobility to take your business elsewhere if that’s what you feel you need to do. Other things to look out for are whether or not you will be better off financially with a different product and if there are any application fees on the prospective refinanced home loan.
Of course, you would only make the switch if you are content that the interest rate you are leaving behind was more expensive than the interest rate you are securing through your new deal. You might even qualify for debt consolidation or use additional funds from your home loan to buy a car or have a home makeover. There is always a fair chance your new lender gives you more freedom and flexibility than the one you are leaving behind.
Once you have made your decision to make the switch, there is no greater place to do that than SwitchMyLoan.com.au as we first do what we can to work out the best deal available for you and put you directly in touch with your new lender.
Call 1300 307 155 and start saving today!
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