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Mortgage Switching Calculator

With such a large range of products in the market today, switching your mortgage to potentially save your money is an attractive option. It is always a good practice to give your current home loan a health check from time to time, whether you are looking to refinance or other types of finance.

It can be quite easy, and a Mortgage Switching Calculator can be the best place to start.

Deciding whether to switch to a new home loan product or stay with your current loan can be a complex decision. For many Australians Simply comparing interest rates is not enough as there are many other factors to consider, such as setup fees, ongoing fees, introductory rates, and the lender’s track record in maintaining cost-effective rates

What is Mortgage Switching?

Mortgage switching is a financial transaction commonly practiced in Australia that involves the process of transferring an existing home loan from one lender to another, primarily with the intention of capitalising on more favorable interest rates, superior loan features or other incentives that may be available from the new lender.

By undertaking this action, it is plausible that borrowers may benefit from substantial savings over the lifespan of their loan. Nevertheless, it’s imperative that a comprehensive analysis of the costs and advantages of mortgage switching is conducted prior to proceeding with this course of action.

Factors To Consider Before Deciding to Switch

Here are some key considerations when deciding on whether to switch your mortgage:

 

    1. Is Renegotiation with Your Current Lender Not Viable?

 

    1. Can you renegotiate your current loan without switching or refinancing? This option usually saves you the most fees and time, so it’s best to speak with your lender first to see if they can reduce their costs to keep your business.

 

    1. Does Your Contract Allow for Loan Switching?

 

    1. Do you qualify to switch your loan? Even if there are cheaper options on the market, you need to qualify for the loan. If there has been a substantial change in your income, property value, or credit history, you may find that you are unable to switch, so check with an Excellence Finance Mortgage Broker first to see if you qualify.

 

    1. How Much Will You Save?

 

    Will the interest rate savings outweigh the refinance costs? Some lenders offer cash backs or rebates for refinances, so be sure to check what is available to you.

 

Need Professional Advice?

Do you need help deciding whether it’s worth switching or refinancing your home loan? Speak with an Excellence Finance Mortgage Broker today.

Disclaimer: The calculations provided by any calculator do not take into account all fees and charges. The results provided are estimates only and should not be relied upon for the purpose of making a decision in relation to a loan. Interest rates and other costs can change over time, affecting the total cost of the loan. Borrowers should consider discussing their individual situation with a qualified Australian Credit Licensee or Authorised Credit Representative (Excellence Finance Mortgage Broker).

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