Don’t be scared of switching home loans
SWITCHING home loans isn’t something to be scared of. Everyone should examine their home loan arrangements regularly. There may be big savings you can access. But don’t make one of these mistakes.
1. Refinancing when your property has lost value - Losing value can drive you into a higher interest rate loan.
2. Not crunching the numbers on exit fees and costs - Fees for exiting your current loan could outstrip the interest rate savings.
3. Refinancing during a fixed interest period - Fixed interest loans may have exit fees.
4. Switching after your credit record has an infringement
5. Not checking the comparison rate - A comparison rate takes into account ongoing fees.