Should I reprice or refinance my home loan?
4 min read
When it comes to ensuring you’ve got the best interest rate for your home loan, your bank is not always going to automatically provide you the lowest rate. Therefore, it makes sense to review your home loan every year or so to check what rate you’re on and whether there are better home loan products on the market.
What if my current bank already has the best rate – I’m just not on it?
That’s where your mortgage broker comes in. We complete what’s called a pricing request, whereby we arrange for your bank to review your home loan and advise what the best possible rate is that they can provide for you. It’s much easier than refinancing, with much less paperwork needed to complete the pricing change.
The bank then adjusts the rate on your home loan and your repayments will change accordingly. Your broker can contact your bank as often as you like to request they review your interest rate, though we recommend you do this around once a year.
What if I’m not happy with my current mortgage broker?
You can choose to engage Entourage as your new broker. We conduct an annual rate review for all of our clients and if appropriate, organise your repricing or refinancing accordingly.
What if I’m not happy with my current bank?
That’s an easy one. There are over 40 different lenders we work with and each of them offer a large range of different home loans to suit a range of needs, occupations, and income situations.
Once we’ve found the right one for you, a refinance of your home loan can commence. To refinance your loan, you will need to provide income verification and expenses paperwork, along with ID and a few other documents.
It’s important to note there may be fees involved in your refinance such as application fees and account closure fees that each of the lenders may charge. Your broker will discuss this with you before you make your decision.
Not just a better interest rate
A common reason for refinancing is to save money by securing a lower interest rate. However, some banks are also offering to pay you for refinancing your loan, this is in the form of a cash back offer. At the time of writing some Australian lenders were offering up to $3,000 when you refinance your home loan to them (terms and conditions and lending criteria apply). So not only could you get a better interest rate, but you get some cash in your pocket too.
Ready to see if you can get a better interest rate?