Home News Top 10 refinancing pitfalls

Top 10 refinancing pitfalls

Font size :
Nila Sweeney

Top 10 refinancing pitfalls

1. Automatically refinancing with your current lender without shopping around
2. Assuming lower rates will automatically save you money without considering overall cost versus savings
3. Procrastinating over applying for a home loan while waiting for interest rates to drop. Don't gamble on better future rates.
4. Failing to get your new rate locked in writing
5. Not doing your sums. Decreasing your interest rate by at least 0.75% to 1% will save you about $100 a month on a $150,000 mortgage
6. Switching loans or lenders without clarifying whether the total costs (including establishment fees, legal fees, stamp duty fees, ongoing fees) are outweighed by the savings in interest
7. Not having a lender or broker evaluate your credit rating and regularly revise your financial position
8. Not knowing the true cost of refinancing. Make sure your lender provides you with written statements on application fees, deferred establishment fees, or break costs on fixed loans.
9. Falling prey to the lure of honeymoon rates, which ultimately revert back to their original or higher rates at the end of the introductory period
10. Taking out money to pay off credit cards with no intention of changing spending behavior, racking up further debts while drawing out more home equity. Don't turn what could be a short-term debt into a long-term debt

With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now

Mortgage News and Articles

Many millennials are relying on an inheritance to buy homes Many millennials are relying on an inheritance to buy homes

Lawyers are seeing cases where disputes over inheritance have created tensions within families Read more

Gen Y homeowners fearful of interest rate rises Gen Y homeowners fearful of interest rate rises Many are worried rising interest rates will negatively impact their cost of living expenses, according to a new survey ... Read more

Young Sydneysiders are less keen on homeownership Young Sydneysiders are less keen on homeownership Many would rather ‘rentvest’ than be tied down to a costly owner-occupier mortgage, according to new studies ... Read more

New social housing aims to transform Ivanhoe Estate New social housing aims to transform Ivanhoe Estate The sprawling redevelopment aims to boost the supply of affordable housing in Sydney ... Read more

More mortgage news and articles

Sponsored Links

Thursday, Aug 24, 2017
Top Featured Rates
Top Bank Rates

Get help choosing the right home loan

Let us help you find the right home loan for your needs.

Tell us a bit about your circumstances:
  • Purpose of mortgage
  • Household Income
    $
  • How much do you want to borrow?
    $
  • How much deposit do you have?
    $
  • How much is your house worth?
    $
  • How much do you still owe on your mortgage?
    $
  • What type of mortgage do you have?


  • How much is your new home?
    $
  • How much do you want to borrow?
    $
  • How soon do you want a mortgage?
Next
  • First name
  • Last name
  • Where do you live?
  • Phone number

Special Offers

Related Keywords