Mortgage Switching Calculator
Calculate a comparison between the costs of staying with your current loan or switching to a new product.
Things to consider when switching mortgages
Whilst many Australians may believe its a simple case of comparing interest rates when deciding whether to stay with their current home loan or switch to a new loan product, there’s a bit more to it. Setup fees, ongoing fees, introductory rates and a lenders track record on maintaining cost effective rates all come into play when calculating whether you should switch your loan. Here’s some of key things you should calculate when deciding on switching your mortgage:
- Can you renegotiate your existing loan without switching or refinancing? This will generally save you the most fees and time, so its always best to speak with your lender first to see if they will reduce their costs to retain your business.
- 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 your credit file you may find you’re unable to switch – so check with a mortgage broker first to check that you qualify.
- Will the interest rate saving outweigh the refinance costs? Some lenders will offer cash backs or rebates for refinances so be sure to check what is available.
Do you need assistance on finding out whether its worth switching or refinancing a home loan? Speak with a broker today.
Disclaimer: The calculations do not take into account all fees and charges. The results provided by this calculator are an estimate only, and should not be relied on 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.