Hi. I need some advises from all. The interest rate right at the moment is high. In fact, most of the bank keep increasing the interest rate. Just wonder anyone do transfer or change lending bank after a period of time? How long will you stay with one mortgage company or bank, then look into the mortgage interest rate and change/transfer? In what situation or what should I carefull about transferring lending bank and company? Thanks.
Hi,
At the end of the day, unless refinancing to a new Bank will save you a lot of money in the long run, then why would you want to change.
You must consider the costs involved in re-financing, such as: early repayment fees, Banks discharge fees, registration fees, stamp duty and the new Banks application fees.
A Bank Manager or Broker can show you that you can save $50,000.00 over 30 years, but in what likelyhood will your loan go for 30 years?
If you have a $300,000.00 and the new bank's rate is 0.20% better than your current rate, then you are looking at a $600.00 per annum. But if its cost you $1500.00 to re-finance then its two and a half years before you are starting to get ahead.
Remember a Bank isn't going to turn away new business as their lending officers all have sale targets to meet and a Broker stands to make money on your transaction if you go to new lender – so be aware that you are the one that should benefit from any refinance, not someone else.
Banks all have retention teams, if you ring your Banks home loan hotline and suggest to them that you are talking to a Broker / another Bank about a refinance – it would be highly likely that you will talk to a member of that retention team. You may will end up with a better deal from that call, if not you know that your current Bank doesn't value your business.
Cheers
Shane
Buyers Choice Home Loans
07 38207161
[email protected]
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