With all the focus on interest rates currently, you are entitled to ask if your lender is giving you the best rate possible. Competition for loan market share is as fierce as ever and all of the banks are advertising very low headline rates that certainly make the average borrower at least consider switching rates to make savings – and with good reason. There is plenty of evidence to suggest that banks tend to use their existing client base to subsidise their drive for new customers.
Refinancing is not necessarily the best option in all cases, but it is something that should be at least investigated on a regular basis.
While there is a distinct possibility that you could achieve a better rate if you elect to refinance, you need to factor in all costs involved in the refinancing process. Costs to consider are application fees, break fees, monthly charges, annual fees as well as hidden costs associated with honeymoon periods and fixed rates.
Deciding whether refinancing is the right option for you can take considerable time and effort to simply research all of the interest rates on offer in the market. Then comparing options, features and relative costs can become terribly confusing. That’s why it is important to have a clear picture of what it is that you are trying to achieve and how you want your loan to work for you.
Making the right decision to refinance is not as easy as going for the cheapest rate. To ensure that you get the best result you need to have a way to compare various loans and match what is on offer to your needs. The team at Australian Finance Hub have the expertise and experience to help you identify what will work best for you. Contact sus today to discuss your refinancing needs.