That is one of the most frequently asked questions and something that needs to be carefully considered before signing loan documents. It comes down to what you think is right for your financial situation. Speaking to a broker is a good way to find out what loan is most appropriate for you.
A broker will not force you to take out a product; they recommend a loan that will fit your needs and take care of all of the paperwork and application requirements. If you would like a specific type of loan, a broker is able to compare a wide range for you.
My lender is charging me a higher home loan rate than I see advertised elsewhere. Can I change lenders?
This is the reason why most people change lenders. There may be a penalty clause in your current home loan, meaning you may need to pay a discharge fee, but it could still be in your financial interests to change. When shopping around, it is always important to look for the comparison rate of a product. A comparison rate is essentially the true rate, taking into account the fees and charges you will pay on the loan. So a lower rate doesn’t necessarily mean the repayments are less. St James Finance are happy to assist you with home loan refinancing.
I have just come off a ‘honeymoon’ interest rate to a much higher rate. Can I move lenders or am I locked into my mortgage?
You can walk away from most mortgages, although penalty fees sometimes apply. We can help you to review your options.
If I move my mortgage to a new lender, is there anything stopping that lender from increasing their rates in a few months time?
It depends what kind of product you have. If you’re concerned about rising rates, perhaps consider a fixed rate home loan, where repayments are fixed for a period from one to five years.
Banks and other lenders pay different amounts for the money they on-lend. They have different overhead structures and different profit expectations that affect how much they charge to lend people money.
The last three to six months of mortgage statements are sufficient to begin this process. St James Finance can advise on other documentation.