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.