What should I consider BEFORE refinancing?

Before refinancing we strongly urge you to give careful consideration to:

1. Refinancing costs and charges

Current lender charges
Discharge mortgage admin fee approximately $300
Government charges
Discharge mortgage registration fee (Vic) $114
New mortgage registration fee (Vic) $114
New lender charges
Application fee $0 – $600
Lenders mortgage insurance $0 if loan to value ratio is below 80%
Brokers charges
Brokerage or mandate fee Our service is FREE

2. Introductory or honeymoon rates

Consider the true ongoing interest rate once the initial interest rate period has expired and compare whether the quoted ongoing interest rate is in fact an improvement on your current arrangements.

We always like to compare the true cost/benefit analysis over a period of 3, 5, and 10 years for you.

3. Monthly or annual fees and charges

The “comparison rate” is a regulatory standard which lenders are required to disclose and helps to give you a picture of the actual rate including fees. It includes the fees associated with the mortgage, such as application fee, ongoing fees and discharge costs.

We believe the “comparison rate” is only a good indication if you plan to hold to your next home loan for 30 years. Bear in mind though, that the average loan term is about three years before a client refinances again, and this is because of various reasons. So, as mentioned above, please allow us to compare the true cost/benefit over a period that is relevant to you.

4. Our FREE over the phone comparison

At Blue Key Finance we appreciate that formulating a true comparison can, at times, be a confusing exercise. Your lending requirements may have changed since your loan was established and we are dedicated to ensuring you receive the most appropriate financial solution for your individual lending needs.

A refinance away from your current lender to your new chosen lender can take up to five weeks.

At Blue Key Finance we don’t just facilitate the lending, we also listen – call us now.

About the author

Matt Carra

Matt Carra

Matt Carra is the Owner of Blue Key Finance, a Finance Broker since 2004, an SMSF Lending Specialist, a Property Investment Educator, and a Mentor to new Finance Brokers entering the finance industry. Matt is passionate about providing valuable guidance and honest advice, educating Australians on how to buy their first homes and invest successfully while protecting them with knowledge. Matt has strong long-term relationships with his panel of lenders and extensive knowledge on their credit policies, and utilises that skillset to give you peace of mind by recommending you to the right lender the first time, to negotiate a better deal, and to fight for your cause – that’s Matt’s commitment to you. Contact Matt today to start the conversation on 03 9700 7033 or email matt.carra@bluekeyfinance.com.au