Selecting a loan and doing a cost benefit analysis
Once you’ve selected a loan, your mortgage broker will guide you through the next steps to ensure your new loan saves you the money you are looking for.
Organising your property valuation
Your new lender will want to do a valuation on your property before they approve your loan. This critical step will determine where your Loan-to-value ratio sits and if you will have to pay Lenders Mortgage Insurance (LMI).
A mortgage broker will do a thorough cost benefit analysis, adding up all the savings and costs involved in switching your loan.
This analysis includes:
What fees you will incur getting out of your existing home loan?
When you leave your existing loan you may need to pay some administrative fees.
What fees will you incur from your new lender?
Some lenders will charge you establishment fees when you set up a new loan product however you should see if your broker can negotiate to get these fees reduced or waived.
What government fees will you pay?
When you transfer your loan from one lender to another, you will have to register the new loan with the government. Your mortgage broker can take care of this for you.
How long will it take you to start saving money and how much will you save?
To get a simple overview of this, try our compare loans calculator.