Will I be any better off?
Should you look for a better deal?
Does
refinancing really save you money? We tackle these tricky questions and answer all the common queries asked of home owners who are considering refinancing. 
According to Infochoice, you could be missing out on $6.1 billion in annual savings from the Big Four banks. While the major banks remain more expensive, they continue to be more popular with home owners looking for a mortgage.
Searching for a better deal on your home loan can mean different things to different people. Some homeowners may want a lower interest rate or a shorter loan term in order to save money. Other home owners may be looking for more flexibility in their mortgage, or want to change from fixed to variable, variable to fixed etc.
Sure, there are costs when refinancing. These costs must be considered and factored into any savings that may be made. The total expense of refinancing will vary depending upon your lender and the type of loan you have, but the average you can expect to pay is between $1,000 and $3,000. This figure is made up of exit fees, new loan establishment fees as well as legal fees such as property valuation.
Before you do anything else, look at the terms and conditions of your current loan to determine what your break costs would be. Then, calculate the savings made by changing to a loan with a lower interest rate.
If it costs you $1,000 in refinance costs and you will save $100 per month on the new loan, it will take 10 months to break even. As long as you are planning to stay in the home for at least a year, it would be worthwhile considering.Funding pressures that exists in the non-bank sector along with mergers and takeovers have enabled the major banks to get ahead of the smaller banks or other lenders.
This means competition is quite fierce between the other lenders, so it can be worthwhile seeing what deals you can negotiate.
A mortgage broker has access to all lenders, big and small. A great mortgage broker will be able to source several home loans and find the cheapest deals around, while still offering the flexibility and support that you need from your mortgage. To see if refinancing can hep you achieve a better financial position, call our team of brokers today on
and speak to a local broker about your options. Or, feel free to just fill in your details
on line and we will get back to you.