Simply because mortgage brokers do the work for you, search the market and negotiate better rates with the banks they are often the better choice when refinancing.
Refinancing lets you change your home loan to suit your current circumstances.
There are many things to consider when it comes to refinancing your home loan:
- What is the value of the security property and is there sufficient equity to support the loan
- Do you have the borrowing power with another lender
- If you currently have surplus funds do you want to retain these are would you prefer to reduce the loan amount
- Does the current loan have an offset account and is this something that is important for you to retain
- Is any portion of the current loan under fixed rates and is there a break fee involved to switch
- What is the remaining loan term and would you prefer to continue with the current loan term or alter the remaining term
- Do you have a view of fixed verse variable rates
- What are all the “hidden” costs in refinancing and does it make sense to move
Your mortgage broker is legally bound to work in your best interests. They are your expert advocate and know how make the process as simple and easy as possible.
Questions to ask your mortgage broker when refinancing:
- How will refinancing benefit my current situation?
- What are all the costs incurred in refinancing?
- Which lenders offer a refinance cash rebate?
- Which lenders have the best borrowing power?
- How much can I borrow to refinance?
- Are fixed rates or variable rates better?
- Should I have an offset account?
- How long does it take to refinance?
- Can I refinance my mortgage to pay off other debts?
Why use a mortgage broker verse a bank when refinancing?
- Banks will only offer you one loan product, their offer. Mortgage brokers will scan the market and find the right lender for you
- Mortgage brokers are legally bound to work in your best interests. Banks are not subject to the same requirement
- Mortgage brokers will help you with organisation of your supporting documents, explaining why they are necessary and only request
- what is needed. Banks will expect you to prepare everything required on your own and won’t advise if anything else is needed or how to save time during the process
- If for any reason the bank cannot help you, they cannot offer a different lender. Mortgage brokers have many options available