Fees are one of the factors borrower’s look at when it comes to comparing loans. They can mean the difference between either paying or saving thousands of extra dollars over the life of the home loan.
Early exit fees used to deter many borrowers from switching home loans as there were major costs involved. Some mortgage holders were not able to finalise the loan early or even refinance to a better loan as the exit fees were too excessive.
That is no longer the case. On July 1st 2011, the Federal Government abolished early exit fees on new loans so that if borrowers paid off their home loan early or wanted to change to another lender, they could do so without huge exit fees to consider. These new laws have also enabled better competition within the mortgage industry as borrowers now have the freedom to compare loans and refinance if they find a better option for them. If you are interested in refinancing, State Custodians has several sharp and competitive home loans available.
However, if you decide to change lenders, it is important to be aware of the fees you may incur in order to determine whether it is worthwhile refinancing. Most lenders will have application or setup fees to cover the costs they incur at the start of a loan. Non-bank setup costs are approximately the same as other lenders. Lenders mortgage insurance for loans above 80% will also be within ballpark of what other lenders are changing. There will also be discharge fees from your current lender to bring in as well plus state government fees to register and transfer the mortgage. Ongoing monthly or annual fees also need to be factored in as well.
Even though the interest rate and home loan extras may be better than your current loan, don’t forget to research the fees involved to ensure that you will actually get the benefit you expect.
As Australia’s Leading Non-Bank Lender, State Custodians offers competitive interest rates and excellent customer service on our home loans. It is easy to compare your current loan with one of our loans by using one of the many calculators available on our website and by looking at the information table listed on each home loan page. This information table will show you what features the loan has and what fees are charged by State Custodians as well as the Government and Third Party Fees. If you would one of our friendly credit managers to calculate this for you, please give us a call on 13 72 62.
Refinancing to a non-bank lender may save you thousands of dollars over the life of the loan if you do the sums and factor in the cost savings in interest and all the fees involved. It is important to do the sums to ensure that there is a clear saving when looking for a home loan or refinancing your current loan. At State Custodians we provide our customers with minimal fees in order to help save you more.