Should you refinance?

● To check whether it’s worth breaking your home loan contract to take advantage of the new low interest rates, ring your mortgage broker or bank.

● They’ll tell you your fee for

ending your contract early.

● You need to then calculate if the fee will add up to more than the money you’d save from reduced interest payments. But beware, if the fee is large, you may have to add it to your home loan and then pay interest on it as well.

● Loan Market mortgage adviser Bruce Patten says most people will either save no money or lose it if they break their contract. But he said it’s worth calling your broker or lender because the odd person will be able to save cash.