With interest rates at historical lows and competition between lenders being fierce, it can be an opportune time to re-examine your current lender’s offering.
Are the rates and fees with your current lender good value in today’s environment?
Generally, your lender won’t tap you on the shoulder and tell you they want to give you a better interest rate. Except when your lender or bank gets the impression you are not happy with their service and you are thinking of leaving.
Because of the recent changes in the way banks and lenders have to conduct themselves when providing home loans to consumers, there is a more flexible and transparent lending process.
This is good for the borrower as it makes changing lenders easy, low cost and painless to change.
The exit costs are low, between $250-350 on average.
Another incentive to change lenders can be the rebate the new lender may provide to you as a reward.
So if you can find a lender whose rates and fees are lower and also offering a cash rebate that will cover the costs to change and also put extra money in your pocket, this can be a win-win situation.
Of course, lower rates are not the only reason for changing banks.
- It could be just poor service
- Your family has expanded and you need that extra room
- Maybe your financial commitments are putting a strain on you – you need to consolidate your debts
- Possibly your home has grown in value and now is the time to tap into some of the equity and buy that investment property
Whatever reason you have for considering refinancing, remember always do your homework and research.
What will be the benefits for you financially and the impact on your lifestyle if you take the step to refinance
Let us help you make the right choices when you decide to refinance.