By Steve Jovcevski, Property Expert Mozo
Much like our personal relationships, a relationship with your mortgage lender begins with being swept off your feet. Lured in by promises, and of course, that glorious honeymoon period. But, just like most relationships, the honeymoon ends and the reality of commitment begins to sink in. The demands of life change, and things that drew you in to begin with might not be so desirable now.
With literally thousands of home loans in the market, so there’s no doubt a few of them will offer more competitive interest rates, lower fees, bonuses and flexibility that your current mortgage doesn’t.
If you’re wondering if it’s time to make the split, check out these telltale signs that it might be time to break it off with your lender.
Things are just not the same
When you first met your bank they enticed you with a great deal like a competitive rate, no fees or an introductory offer. But lately you’ve noticed changes, interest rates have increased, fees have crept back in and what seemed an amazing deal to begin with, isn’t anymore.
If you’ve been with your lender for more than 3 years, now is the time to see if the grass really is greener on the other side. By comparing what other deals mortgage lenders in the market are offering, you could bring your repayments down significantly. Home loan calculators are a great way to find just how much extra you could save by switching!
Maybe it’s you changing, not them! Perhaps your family has grown, work circumstances have changed and you now need a mortgage with more flexible features. Whether that be a mortgage that comes with an extra repayments or redraw facility, it could be time to consider switching. By changing to a more suitable loan, you’ll reap the benefits of features that are customised to you and you might just come out ahead financially, too.
You want certainty
Are you fed up with changing adjustable rates? When you’ve adapted to paying a certain amount and then your rate rises or falls? It could be time for you to refinance to a fixed interest rate loan, so all of your repayments will remain the same over the fixed term, and you know exactly what to expect. Just keep in mind, if you’re refinancing to a fixed rate, many come with break cost fees, so only make this move if you’re sure you want to stick it out for the entire fixed term.
About Steve Jovcevski
With over 20 years experience in the property and mortgage market, Steve lives and breathes real estate. He is passionate about helping borrowers save on their home loan and writes for financial comparison website mozo.com.au.