Quick Hacks: Refinancing Your Home Loan

The Australians are becoming a savvy bunch. In 2016 the mortgage refinance market is expected to grow 30% compared to 2015. Consumer’s willingness to put loyalty on the back burner have resulted in some fierce competition among the banks, credit unions, and mutual banks. Here are three simple hacks you should consider when looking to refinance.'

#1 Beware of 'honeymoon rates'

There are plenty of lenders out there who will show super attractive rates but in the fine print somewhere may mention that this rate is only for an “x number of months” and will then revert to “y rate.” Be aware and always read the fine print.  

#2 Shop around

This is a no brainer. From experience, we know that using just the one broker or a lender will not work in your favour. Going to a bank lender will limit the number of options you get and using the one broker will only give you a biased solution. There are plenty of better offers out there that your preferred channel may not be able to tap into or may not prefer writing to due to various reasons. Do some homework and research.  

#3 Compare the comparison rate

This is something a lot of customers forget to compare. Using comparison rates to compare different mortgage products can help compare rates better because the comparison rate will take into consideration other regular costs associated with the mortgage such as fees and not just the interest rate. Most importantly this also takes into account what the mortgage reverts to if there is a honeymoon rate or a fixed rate mortgage.

Ranin Mendis from LoanDolphin. LoanDolphin is an unbiased and transparent online auction marketplace where banks and lenders fight for your home loan.


    The allegation that 'using the one broker will only give you a biased solution' is ill-conceived and somewhat defamatory towards a hard working industry. This type of allegation needs to be backed up with some evidence.

      It depends on the broker and the definition of broker. Is a broker that works for a specific lender really a broker or just a sales rep?

      Basic due diligence would suggest getting more than one opinion. The Finance Industry hasn't exactly covered itself in glory throughout its history. There are good guys out there, but there are certainly sharks as well.

      FInancial Advice is a fairly highly regulated industry which, in my opinion, means that, left to its own devices, it would be damaging to the very people its servicing.

      Having a read of the following two articles implies that NOT checking out more than one broker would be seriously ill-conceived and could put you in a worse situation than prior to consulting a financial advisor.

      Some references:

    Bit of a stretch to call these hacks but good advice, nonetheless.

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