Most people with a mortgage<\/a> understand that refinancing can save thousands, but knowing how to do it is another thing.<\/strong><\/p>\n John Tindall, of Accumulus Home Loans<\/a> in Sydney, says the benefit of refinancing is simple\u00a0\u2013<\/span> \u201cmore money in your pocket\u201d.<\/p>\n Now more than ever, big and small lenders<\/a> are offering lower interest rates, better features and switching incentives, he says.<\/p>\n Tindall saved one client $6000 a month and netted 250,000 frequent flyer points, enough for a trip to the US, just by refinancing and getting a better interest rate.<\/p>\n To get independent advice about home refinance, go DIY or use a mortgage broker, Tindall says.<\/p>\n Mortgage brokers make the process of refinancing less time consuming. Picture: Getty<\/p>\n<\/div>\n \u201cYou can do it yourself, by internet and branch-by-branch research, which is free, but time consuming. Or use a mortgage broker, who can easily compare dozens of lenders, usually free of charge to the borrower,\u201d he says.<\/p>\n Brokers get paid by the lender chosen, Tindall explains.<\/p>\n \u201cJust be aware that they don\u2019t cover all lenders across Australia, such as building societies and credit unions.\u201d<\/p>\n Tindall suggests reviewing a mortgage every three years to ensure it\u2019s still appropriate.<\/p>\n \u201cIf there\u2019s an alternative, I seek a minimum benefit of $1000, possibly from lower interest rates or an incentive from the lender, to compensate for the costs of refinancing,\u201d he says.<\/p>\n Working out if a new deal is better in the long run can be tricky.<\/p>\n \u201cI would start by looking at the annual cost of the loan, which would include the interest payable, plus fees. I would then keep an eye out for similar offers<\/a> from other lenders and use these to ask the current lender if my loan was still competitive,\u201d Tindall says.<\/p>\n If you see a better deal advertised, act, he advises.<\/p>\n \u201cSee if your bank can match it, particularly if the benefits of switching are less than $1000. When appropriate, I give my clients a free report comparing three different lenders side by side, including their own, as ammunition in challenging their current lender to do better,\u201d he says.<\/p>\n Don\u2019t just look at the interest rate though, Tindall says.<\/p>\n \u201cA loan is not just interest rates, but a bundle of services of products that will appeal differently to different people.<\/p>\n \u201cDo you want a local branch? Are you happy with just ATMs and internet? Do you want an offset account, which can only be offered by lenders with a banking licence?\u201d<\/p>\n Consider all factors before switching, he says.<\/p>\n
\n <\/p><\/div>\n Realestate au <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"![\"mortgage](\"https:\/\/i0.wp.com\/www.realestate.com.au\/blog\/wp-content\/uploads\/2017\/10\/13121236\/mortgage-broker-financial-advice_2000x1500.jpg?resize=2000%2C1500&ssl=1\")
<\/p>\nRefinancing a home loan<\/h2>\n
Review your mortgage<\/h2>\n
Snap up a better deal<\/h2>\n