Considering Switching Mortgage Lenders? Think about these points first

Whenever interest rates take a twist, the immediate query that pops into the minds of numerous home loan borrowers is, “Is it time to jump ship for a more appealing offer?”

While switching lenders could be the right move for some, don’t make the leap without first doing your due diligence. Keep in mind that sticking with a familiar lender might sometimes be a wiser choice than venturing into the unknown, especially since there’s more to a lender than merely their interest rate.

Here’s some food for thought.

Charge and Levies

Even though exit fees have been consigned to the history books, several other charges, including application fees, stamp duties, valuation fees, and mortgage insurance, could still come into play. Take a seat and carefully weigh the financial implications of modifying your loan against any prospective interest savings.

Unlocking Discounts

Do you actually know the interest rate you’re presently paying? Review your loan documents; you might discover that you’re paying less than you assumed due to a special package or loan amount. Be aware that such discounts might not be universally offered by all lending institutions.

The Power of Asking

It’s more costly for lenders to acquire new customers than to retain existing ones. Hence, before making any drastic changes, have a chat with your current lender to see if they can offer a better deal. You may be in for a pleasant surprise—they might just agree to your terms.

Overall

These are merely a smattering of avenues that could lead you to potential savings on your home loan. Interest rates are an unpredictable entity, so rather than acting impulsively each time they fluctuate, scrutinise your individual financial circumstances. Then, seek expert guidance to help you make an informed decision. Acting in haste can prove costly once you’ve already taken the plunge.