Refinancing Myths Smashed!

Here's what I hear on the phone, and how I reply.

Myth 1: It's expensive to change banks ...
Answer 1: The government has abolished virtually all early repayment penalties, mortgage stamp duty, and exit fees - especially on Variable Rate loans. Fixed Rate loans have Terms & Conditions, which may incur break costs to break the fixed rate.

Myth 2: It's not worth it .. (or, "I'm very busy") ...
Answer 2: In the past 20 home loan health checks that I've done, there's only 3 that I thought the rate was "good or quite good. If you are not in the hands of a proactive broker, the Package Discounts may be out of date and improved, so you may not need to refinance at all.

What's your home loan interest rate right now? {and did you know that over 75% of people don't know.}

Myth 3: It's such a pain to change banks. .....
Answer 3: Yes, there is a few things to do. But I'd ask you to consider how much work versus how much $$ benefit .... STEPS: Firstly we'd have a chat, probably over the phone. I'd ask you the current loan size, interest rate, and what's great (and not so great) about your current lender. If it's worth action, you'd then need to get a few documents together to meet Martin to look at options. We would then look after it all, and we'd compile and lodge the bank application for you. We would followup up the application for you and check and arrange for you to sign loan documents. We would also co-ordinate with your old bank to do the discharge - you usually don't need to contact your prior bank yourself. {it's a bit like dumping someone, but doing it through a friend}.

Myth 4: I don't know when to do it?
Answer 4: There's a few key times. (1) at least every 3 years (2) if you have a need for new funds to consolidate debt, a holiday, a pool, a car etc (3) you don;t love your current lender any more.