Is it time to review your interest rates?

When finances seem tight in the household budget it’s normal to let go of the luxuries in our lives. From take-outs, to trips to the cinema, we sometimes look at trying to find a better deal on all our insurances.

Mind you this is an excellent idea even if the household finances don’t need your attention. There’s a few hundred a year that can be saved just be switching your home and contents, building and car insurance, even the health insurance industry is becoming more competitive when clients ask for a better deal. So imagine what can be saved if you review your interest rates regularly.

The mortgage industry is going through an incredible phase. People are losing confidence in the Big 4 and are turning to smaller financial institutions and independent mortgage brokers to get them a better deal. So what’s the best advice when you decide it is time to review your interest rates?

  • Affordability is tough ATM, don’t burn your credit file applying to multiple lenders.
  • Make sure you understand the features offered in a mortgage. The ones you don’t use could cost you unnecessarily.
    Lots of second tier competitors want your business and are very competitive (that’s a tick for us) if they suit your goals and needs.
  • Look seriously at whether to fix the lot unless you have good advice from a financial advisor as it can cost you more in the long run.
  • This may seem counter intuitive but start with your current lender armed with info of their competitors to save the costs of refinancing. You have to take into consideration the cost to exit your current mortgage and the cost to establish your new one.
    Pay attention to the comparative rates, this show % rate with all costs considered.
  • Be clear on what you do need & what your plans are for next 3-5 years.

But most importantly don’t be afraid to demand more from your lender, after all, they can’t exist without you so make sure you stand up for yourself, and you do that by being armed with as much information as possible.

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