COMPARE THE WHOLE PICTURE
A fresh look at your home loan.
A lower advertised rate is only one part of a new loan. Look at the cost of moving, the years ahead and the features you will actually use.
Compare the move, not just the rate.
Refinancing replaces an existing home loan with another. Before switching, compare the new loan with what your current lender can offer. Include application and discharge fees, possible fixed-rate break costs and any lenders mortgage insurance that could apply.
Keep the remaining loan term in view. Extending it may reduce the required payment but can increase interest paid overall. Work out how long any saving would take to recover the cost of switching.
Moneysmart explains the costs and trade-offs of switching home loans.
Bring a useful comparison to the conversation.
Collect your current balance, rate, remaining term, regular fees and the features you rely on. Ask for figures on the same loan amount and term so the comparison is meaningful.
- What are the total upfront and ongoing costs?
- Which features change, including offset or redraw access?
- Does the proposed term match your goal?
A comparison rate includes interest and most fees, but does not replace checking the full terms. See Moneysmart’s home-loan comparison guide.
A few useful questions.
Do I have to change lenders?+
No. Reviewing your current lender’s pricing or another product may be an alternative. Compare any internal switching costs and conditions as well as external offers.
Does a lower repayment mean a cheaper loan?+
Not necessarily. A longer term can reduce the regular payment while increasing the total interest. Compare the term and overall cost alongside the monthly amount.
Read the original sources
- Switching home loansASIC Moneysmart
- Choosing a home loanASIC Moneysmart
A CLEARER NEXT STEP
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