Hi I am currently with Aussie Home Loans for my house loan of the house that i live in i am very happy with the way that my loan is set up and interest rate i have had a broker come and see me but they are very quick in trying to refinance your house with a bank of their choice it seems as thiugh they are out to line their own pockets can i ask if other people stayed with their current lender or did you move on to a different bank??? it seems a huge cost to refinance ??
Hi Kristine
Staying with the bank you are with can sometimes be an advantage because if you refinance with them to a higher amount, they will often not charge break fees etc.
You will possibly still have to pay a new application fee, but some of the legal fees will be a lot lower because they already have security on your property.
I have just refinanced with my bank to get access to equity in one of my IP’s, but have then gone to another bank for a loan for another IP, the reason I went to another bank was that for this IP I am borrowing at 90% and therefore I will only pay Mortgage Insurance on the one property.Agree with rolls and Michael & Kaye,
If you cannot get a better OVERALL deal eg interest savings being higher than break costs and speed & quality of service to actually get you the extra funds then DON’T move to another lender, especially not just to line a brokers pockets – and I’m a broker!
From the broker perspective, generally after 3-4 years in the same loan the break fees are normally minimal, people’s circumstances have changed (earning more, gained lots of equity which they want to invest in IP’s/shares etc) and either are not in the right loan style for their objectives or given the competitive nature of the lending market there are probably lot better options around now.
A good broker will give you all the info to assess what option is right for you, without doing a ‘hard sell’ on any one option, because it’s your decision in the end. So stick to your guns and ask lots & lots of questions until you’re satisfied you are making the right choice.
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Happy investing,
MelHi Kristine
It must be worth refinancing.
1. Most people are not better off to refinance unless they can save at least 0.50% (as a rule of thumb).
2. In my opinion, you should be better off in the first year. That is, the costs associated with refinancing must be offset by the interest rate savings in the first 12 months.
3. It normally costs $600 – $1,000 to refinance.If you are happy and you cannot see a reason to refinance them don’t be bullied into doing so.
Ask the broker why he/she suggests refinancing. If they say you will be better off then ask for the numbers. They have an ethical obligation to make sure you will be better off.
Cheers
Stu
Property & Finance News
at http://www.prosolution.com.auIf you do refinance, what government charges are applied?
thanks to everyone for your inputgoverment charges are zero to my knowledge its more legal and brokerage and setting up loan fees that i am concerned about…the broker was very broad in his answers to my questions and paper work that he left me i am paying 6.45 interest at the momment and he said he can get me 6.35 to 6.75 so that a huge gap in between with different bank charges for setting it up ranged from $500 to $2,500….think i will staywith current leander for my depsit refinace with them and then go to a different bank for IP plus i have only had my loan for 16 months so i will prob. be charged for exiting early on that as well
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