Q. I have heard a lot of differing opinions about refinancing a home loan and I’m not sure who to believe. Is it worth refinancing or will it be too expensive and time consuming?

A. There are a number of myths floating around about refinancing and it is important to decipher fact from fiction before making any decisions. Here are a few myths we’ve busted. 

Too costly to refinance: With exit fees being banned on 1 July 2011 (for loans established after this date), refinancing may not cost as much as you would think. Although there may be some fees included to switch lenders, if you find a lender who offers lower interest rates, little or no upfront fees or ongoing fees, you may find that you will receive greater savings over the life of the loan that outweigh these initial fees. However, it will require research beforehand to ensure you are getting the best deal.

Too much hassle to refinance: Although refinancing will take some effort, it will not necessarily be a hassle. Most lenders are eager to bring in new borrowers and will be more than happy to work with you to find a suitable home loan option and make the application process stress free. You will need around six months loan statements for your current loan and recent payslips so it will pay to have these handy.

It can be confusing to know whether to get a variable rate or fixed rate mortgage, and what features are important. That's why it's important to not only check the right rates, but make sure that you're getting the right features in your home loan. Get help choosing the right home loan