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Switching Loans

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Thinking of switching loans?

Your home loan is usually your largest financial commitment. We understand that changes in interest rates can have a big impact on your monthly repayments and how long it takes you to pay off your loan.

Switching loans might cost you thousands with establishment fees and charges. Remember exit fees have been abolished on new loans, but can still apply to loans entered into before 1st July 2011.

However, if you do your homework, switching could possibly SAVE you thousands of dollars. When you contact us we will compare your existing loan with others available on the market.

Our goal for you is to find out if the cost of switching is worth the potential interest rate saving?

1 We shop around for you

We use our financial calculators to compare interest rates, fees and features of your current loan and several other home loans available in the market.

We might also be able to get you a discount below the listed interest rate, especially if you have a large loan. We will negotiate this on your behalf. We will talk to your current lender and tell them you are thinking of switching to a cheaper loan offered by another lender.

They may offer to reduce the interest rate or suggest a cheaper ‘no-frills’ loan. This could save you significant switching costs. Often, by using us, your mortgage specialist, we can get a better rate than if you try to negotiate this yourself.

2 We work out the potential savings from switching

Our role is to work out what fees you will be charged if you change loans, plus other expenses you may need to pay eg: Lenders Mortgage Insurance (LMI)?

We will show you how long it will be before you start making savings after the cost of switching. We can also compare the minimum repayments of potential new loans.

3 We compare home loan features against your existing loan

We determine a range of potential loans that may be suitable for your circumstances and check them against your existing loan. We will compare the features such as:

  • the ability to make extra repayments,
  • having an offset account and
  • having a redraw facility

You may pay more for a loan with extra features and flexibility so we will need to determine if these features will be important to you and worth the extra expense?

4 You decide, then we help you take action

We will present to you the potential cost savings and differences in features between loans.

Please note: You will only get the potential savings if the new loan stays cheaper over the long term. The longer it takes for a switch to save you money, the greater the chance that the interest rate savings may fade. You can either use the savings we achieve for you to pay off your new mortgage quicker, or choose to make lower monthly repayments to alleviate some of your current financial burden. If you decide you would be better off switching loans, then let’s take action together! 
This article is generic in nature. All investment decisions should be considered wisely and based on your personal and financial circumstances. Seek proper advice before committing to any course of action. This is not deemed as advice.