Refinance loan options

Unfortunately thousands are stuck with expensive and cumbersome loans because they are afraid of changing is too hard or simply because they don’t want hurt the feelings of their bank manager.

It’s remarkable how many people continue to pay hundreds sometimes thousands of dollars extra interest a year just so they don’t have to change the way they bank.

Do I have to change everything?


Banks play on the fear that changing is difficult and things will go wrong if someone does. Not all banks want all of their customers business. Most just provide great deals on home loans and leave other matters such as everyday banking to other banks.

It is actually harder to change a normal everyday bank account than it is a home loan. Why? No-one needs to know when a home loan is refinanced but employers, phone companies, electricity providers, health funds, insurers in fact almost everyone needs to know when a bank account is changed. And don’t worry about upsetting the Bank Manager, they have plenty of other customers they need to look after.

Is it expensive?

Budget approx. $500-$1,000 to change banks. Most is Government Charges, but can vary depending on circumstances and some banks may pay the costs to refinance. For loans greater than 80% of the house value Mortgage Insurance may be required to be paid again, regardless of when it was paid with the current bank.

It’s not always about getting a better deal, circumstances may have change and the current bank will no longer help.

The best option is to speak to LendFirst who can assess your individual circumstances and advise if refinancing is the right thing to do.

What are the risks?

People are afraid of a lesser known bank because they don’t know how safe they are. For investors, this is important but owing money to the bank it is not that much of a concern.

If a lender goes bankrupt client’s loans are sold to another lender and as a possible outcome, interest rates could be increased. Most can refinance to other lenders and end up with a better deal. Some question the service of lesser known lenders but a loan is really just a direct debit each month from an everyday bank account.

Is it difficult?


You will need to provide all your payslips/tax returns and other supporting information to the new lender but depending on your circumstances this is often not complicated at all.

It can take 3-4 weeks from application to refinance to take place so factor this time into your plans.

Most lenders will offer special rates to stay but why should it take you to leave before you get the best offer. Some lenders delay the refinance on purpose to allow time to win you back. So be prepared for a little brown nosing from your bank when you decide to leave them.

If you have a top quality broker like LendFirst on your side, refinancing will be one of the easiest financial transactions you will ever do.

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