I’ve been recently running some Q&As with our local customers here in Gladesville,
answering their questions about mortgages. I’ve noticed that there are a number
of myths and misconceptions that keep coming up, so I thought I’d address the 8
Once I find a good rate, I’m sorted for the life of my
loan. Wrong! Lenders can move their variable rates at any time, so a loan
that’s competitive today may
end up being really
expensive in the future. So it’s vital to take a look at your loan once at least a year.
It’s not worth refinancing a mortgage for an
improvement of half a percent. If you have a $350,000, 30-year loan with an
interest rate of 5.24%, and you refinanced to a rate of 4.74%, you would save
$107 a month and $38,480 over the life of the loan. That’s a massive saving!
A competitive rate doesn’t really matter because the
Reserve Bank controls home loan rates. The RBA adjusts the cash rate from time
to time but each lender can change their rates as they see fit. So if you want to get the best
deal make sure you compare rates between lenders. At YBR Gladesville our aim is
to get you the best rate on the market so our friendly brokers will work this
out for you.
I can’t refinance a fixed-rate loan. Not true. You can
refinance a fixed rate loan but you’ll be hit with a break cost, which is
compensation for the loss the bank will incur when you leave. Speak to your local YBR mortgage
broker to weigh up the break costs versus the potential savings and see
what you come up with. More
questions? Make an appointment with one of our advisors at YBR Gladesville
5. I want to use a mortgage broker but what about the
fees? Mortgage brokering fees are paid by the lender, not by you. A mortgage
broker finds you the best loan at the most competitive rate, so pop by your local Gladesville
branch and speak to one of our experienced mortgage brokers today.
6. I’m too old to refinance my mortgage. Age
discrimination is illegal. A bank looks at your repayment ability, so they’re
looking at your income and the loan term. If you’re close to retirement, you
can look at shorter loan terms or alternative exit strategies. There is always a solution when
it comes to refinancing your home loan and our mortgage brokers are trained to
help you find it.
7. Self-employed people pay higher interest. If you’re
self-employed and can’t produce your tax returns, you may be offered a low
documentation loan which can have higher interest rates. If your financials and
tax returns are in order, you qualify for the same rate as a regular PAYG
8. Banks keep secret files on my credit history. Wrong.
All lenders use a credit reporting system to check your history. Know what they
know by finding out your history at www.mycreditfile.com.au. If you’re having trouble
understanding your credit history or worried that it will impact your ability
to refinance your mortgage, make an appointment with our mortgage brokers today.
We’re sure to find a
Alan Khaw's Top Mortgage Tip: Be
My parting advice: be informed before signing anything and
always communicate with your local
mortgage broker. Most lenders would rather find you a better deal than
lose you as a customer. So
if you have any questions or would just like to chat about how I can help you
refinance your loan, then feel free to give me a call or drop by our local
branch in Gladesville