If you’re just about to apply for a mortgage, then you will most likely have hired a good mortgage broker in Melbourne, or at least taken care of the relevant deal and interest rate comparisons yourself. If however, you have already agreed to the terms defined within a mortgage and you’ve been repaying your home loan ever since; then you might not feel like you are in a position to reconsider your options.
Never say never!
At The Mortgage Calculator we deal with facts not fiction, but did you know that a common misconception is that once you sign up to a mortgage, you’re stuck with it until it’s paid off? This is one of the most incorrect statements that we’ve ever heard – and if you have a mortgage already in place, then you could actually consider switching if you find a better deal somewhere else.
How Does This Work?
We briefly covered this potential a couple of weeks back, but now we’d like to revisit the possibility and provide even more information to you as a borrower. Have you ever heard about refinancing? What about re-mortgaging? Both terms can be applied to loans on a home and as their name might suggest, they are ideal for those that are interested in modifying the terms and conditions of their mortgage.
The first thing that you will have to do is to identify a better deal. This could be by hiring a mortgage broker near you to help with comparisons, or you could get back in touch with your lender and ask them about their current deals. If you make it clear that you’re interested in refinancing your home, then you may even find that your bank is keen to keep you on board by offering a cheaper solution.
If you really do want to flee the confines of your own bank in favour of another one, then there’s no need to talk to your bank at all. Simply get your broker to get in touch with the new bank and let them know that you are interested in re-mortgaging your house. They should be able to come to some sort of arrangement, whereby the new bank cover the cost of your existing loan and offer you a newer, cheaper one in its place.
And that’s as easy as it can be! You can re-mortgage your property at any time (although it’s worth taking advantage of lower rates, if and when they happen in your current deal). If you decide 5, 10, 15, or even 20 years into your repayments that you’d like to switch, then you’ll always be free to do so – but just be sure that it’s the right decision before making the jump.