What are the main things to consider when refinancing?
Refinancing an existing loan comes with fees and charges. These include:
- Application, establishment and handling fees when applying for your new loan.
- Early settlement fees on your existing loan. These vary depending on your lender but many fixed rate loans have significant penalties for early repayment.
- Valuation fees; still required by some lenders.
- Mortgage Insurance. Required by many lenders if the loan is more than 80% of the property value.
- Discharge fees on your existing mortgage and registration fees on your new one.
- Stamp duty (although in QLD there is no Loan Stamp Duty now!)
At Perigee Finance - we look at the way you currently transact with your day to day banking, and work with you to determine the best structure for your new loan.
It is important that we discuss what you need and take into account internet banking facilities, Branch ATM and EFTPOS access, and how fast you need access to your funds.
And sometimes - even taking into account the set-up costs, if rates are coming down - you may save hundreds each month, especially if you have other debts that can be combined into a lower rate loan.
