One of the main reasons to refinance is to save money on your home loan. However, switching to a loan with a cheaper rate may not put you in a better financial position if the costs involved outweigh the interest rate savings.
Court Financial Services will always crunch the numbers, taking into account fees and charges to ensure there is a genuine opportunity to save money through refinancing.
Costs to consider:
- Early exist, discharge or Break fees: your existing lender may charge a fee for terminating your existing loan or fixed rate term early.
- Application fee for the new loan: a fee for applying for the new loan, usually payable on settlement
- Valuation fee: the lender may require and charge you for your property to be valued
- Settlement fee: Fees payable on settlement of the new loan
- Registration fee: Charged to register the new mortgage/lender on your property title.
- Lenders Mortgage Insurance: If your new loan is worth more than 80% of your home’s value, you may need to pay mortgage insurance.
Features to consider:
- Redraw facility
- Ability to make extra repayments
- Ability to pay fortnightly
- Internet banking
Book a CFS Home Loan Health Check
It’s hard to find the time to regularly check the market to compare your loan with new offers and work out whether you could save by refinancing. We can do it for you.
The CFS Home Loan Health Check reviews your loan against the market to identify genuine opportunities to save you money. We say genuine because the savings available need to be worthwhile even after you take in to account costs and fees.
We also consider the features and benefits associated with the loans to ensure refinancing does not leave you short of a specific loan feature you need.
Call CFS today on 03 9429 9775
