The recent turmoil in the US mortgage market has prompted media commentaries suggesting that borrowers with non-bank lenders should refinance.

While some non-bank lenders have already increased their interest rates amid higher costs of raising funds, as a borrower, you should take your time to review your current situation before you consider refinancing. Proceed with caution as switching loans costs a lot of money and it shouldn't be done as a knee-jerk reaction.

It's also important to realise that the current volatility in the mortgage market doesn't affect everyone. As long as you have maintained a strong credit history and are in a position to meet your current repayments, you're on solid ground. However, if your credit history is less than stellar, you may find that it's now slightly harder to get a home loan and it will cost you a lot more than it would have in the past.

"We're already seeing lenders looking a bit nervous and making their bond issues more attractive by tidying up their lending criteria," said Peter James, CEO of Mortgage Ezy. "That's a good thing; people shouldn't take a loan if it means they'll have to sell their property in a fire sale down the track."

A quick look through the Your Mortgage comparison tools ( shows that despite all the noise being made by the big banks, it's still the non-bank lenders that are offering the cheapest rates.

For more tips on refinancing and how to manage your home loan, check out the latest issue of Your Mortgage magazine out on sale now.