Switching Mortgage Calculator

Can I switch mortgage lenders?

With such a large range of products on the market today, switching your mortgage to potentially save you money is an attractive option. It is always good practice to give your current home loan a health check from time to time, whether you are looking to refinance or not. It can be quite easy, and a Switching Mortgage Calculator can be the best place to start. Reasons for switching home loans can include.

  • Interest rates. It’s likely that interest rates have changed since you first took out your current home loan, and there may be better deals out there. Lower interest rates can save you money.
  • Fees and charges. You may find your current financial product has fees and charges you feel are excessive.
  • Features. If you have had your current home loan for a long time, then there might be home loan features on the market today that suit you and your current lifestyle and financial situation better.
  • Financial reasons. Your financial situation may have changed, and you may be looking to refinance your home loan or even buy another property. Your current home loan may not be the most suitable for you.

One of the great things about the modern mortgage market is that it can be simple to switch home loans, and you don’t have to choose the same bank or lender you already have a home loan with. You will need to reapply for the new home loan no matter which bank or lender you choose, but you can benefit from shopping around to find a suitable option. If you choose your current bank and lender you may not need to give them your identification details again, and they will already have an indication of your property value, but those benefits need to be weighed against the long-term benefits of a more suitable home loan. At Mortgage House, we have more than 40 years’ experience and we are proudly different.

From the start, we recognised the limitations of the loan and mortgage finance market and chose a path that meant we focused on being competitive with our rates, offering diversity with our products and providing a level of customer service that is unheard of in the industry. That is why we work hard with you to understand your financial objectives and situation, to help tailor a home loan to your needs. While interest rates are a focus of ours, they can also be a key focus of yours if you are interested in switching your mortgage. There are two main types of interest rate loans, and they can each have benefits to you.

 

  • Variable Rate Loans. These home loans have a variable interest rate, which means they can increase or decrease over the life of the loan. Use our Switching Mortgage Calculator to see how a lower interest rate loan can save you money.
  • Fixed Rate Loans. A fixed interest rate means your interest rates will stay the same over the agreed fixed period, usually between 1 and 5 years. They can help you with budgeting as the mortgage repayments will stay the same over the agreed time.

What does a Switching Mortgage Calculator do?

A Switching Mortgage Calculator is one of Mortgage House’s most detailed tools, but the information it can give you is easy to understand, and it can help you save money. It acts like a mini home loan comparison calculator, allowing you to compare your current home loan with a possible new one. The key to success in using a Switching Mortgage Calculator is making sure the information you put into it is as accurate as it can be.

Switching Mortgage Calculator

What is the estimated value of your property?
$
The amount owing on your current loan
$
The number of years remaining for your current loan
years
The interest rate for the loan.
% p.a.
Does the loan have an introductory period with a different interest rate?

Yes

No

Are there any fees for terminating your existing loan?
$
Is there a regular monthly fee for the loan?
$
The interest rate for the new loan.
% p.a.
Does the new loan have an introductory period with a different interest rate?

Yes

No

Are there any fees for applying for the new loan?
$
Is there a regular monthly fee for the new loan?
$

Your Repayments

  • Weekly
  • Fortnightly
  • Monthly
Introductory Repayments Repayments Total Payable
Current Loan $843.86 $843.86 $151,894.23
New Loan $790.80 $790.80 $142,343.23
Savings $53.06 $9,551.00

Important Disclaimer: This is intended as a guide only. Details of terms and conditions, interest rates, fees and charges are available upon application. Mortgage House's prevailing credit criteria apply. We recommend you seek independent legal and financial advice before proceeding with any loan. * The interest rate shown on Toggle products is a blended rate comprised of 50% fixed interest rate and 50% variable interest rate. The Comparison Rate for each of the home loan products contained in this page is based on a loan of $150,000 over a 25 year term. Fees and charges may be payable. * This mortgage calculator shows indicative repayments based on 12/26/52 equal repayments for monthly/fortnightly/weekly options.

WARNING: The comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.

It will ask you information about both home loans, including the estimated value of your existing and future property, the loan amount (both current and new) and the loan period. Importantly, our Switching Mortgage Calculator also asks you to include information about fees and charges of both mortgages, as well as the interest rates. Once you have done this, we’ll present you with a rundown of the possible weekly, fortnightly and monthly repayments, and whether or not you can save money by switching. We’ll also show you the potential savings in an easy-to-understand graph that will go over the term of the loan.

It’s important to remember that a Switching Mortgage Calculator cannot give you an exact figure of what you will save, but it can give you a good indication and some important general advice you can use to help you find a suitable home loan. Once you apply for a product, and are approved, those exact details will become clear. Speaking to Mortgage House’s lending specialists can give you a clearer picture, and they will work with you every step of the way to let you know how much money you can save.

One thing a Switching Mortgage Calculator doesn’t do is list the features that a new home loan may have. Mortgage House has a range of products that have features separate to interest rates that can help you save money over the life of your home loan. They include:

  • Additional Repayments. No matter your loan amount, being able to make extra repayments without being penalised can save money. Making extra repayments means you can pay off your home loan sooner, potentially saving you thousands in interest.
  • Redraw. If you like the idea of additional repayments but aren’t sure if your budget can stretch that far each month, then Redraw can help. By having access to a redraw feature, you can make additional repayments or lump sum payments, but withdraw them whenever you need, for whatever reason.
  • Offset Account. Having access to a home loan with an offset account feature can also help save money. An offset account is a regular non-interest-bearing bank account you can offset against your mortgage. Interest is calculated on the difference between the two accounts, rather than just the mortgage itself.

Your current loan may not have these features or may charge you fees to access them regularly. Once you have found a suitable home loan with the feature you are after, put the details of that mortgage into our Switching Mortgage Calculator above to see how much more money you might be able to save.

How do I switch mortgages?

Switching home loans is not difficult, especially when you use a Switching Mortgage Calculator as your first step. If, after looking at the calculator and interest rates, and speaking with Mortgage House’s lending specialists, you think the move can save money, then there is no reason to hesitate. Our resources are simple to use and easy to understand and can provide you with a clear picture of your current loan, and how choosing a new one may help improve your financial situation. At Mortgage House we will talk you through a whole range of information such as:

  • Loan terms and conditions
  • Mortgage loan maturity date
  • Interest rates
  • Loan termination or change fees
  • Repayment frequency
  • Home equity and assets
  • Your current lender

Armed with that information you should be ready to make a decision and apply for a product. Speak with our lenders or request a time for them to call you, when it suits best. You can send them questions via email at any time of the day or night and you can even make an application online. Applying online is a simple five-step process that will take only 15 minutes and help us fast track your application. All you need to do is:

  1. Enter your details using the simple 5-step online form.
  2. Link your bank accounts to automatically populate your income
  3. Tell us about your assets and expenses
  4. Upload key documents (such as ID)
  5. Our lending specialists will get in touch shortly afterwards.

You’ll need all the contact details of the applicants handy, as well as your online banking information and information about your assets, such as valuations.

Remember that switching home loans can mean extra fees and charges. Some banks and lenders will charge you if you pay out your existing mortgage earlier than planned, so make sure you budget for that in your decision making. Include that information on our Switching Mortgage Calculator to ensure it is considered.

 

How much does it cost to switch mortgage providers?

Our Switching Mortgage Calculator can take costs into account, making it a great first stop. Costs can be incurred when you’re switching home loans because your current mortgage may have a termination or settlement fee. It is common for this fee to be around $500, but your current bank and lender should be able to tell you when you ask. Our Switching Mortgage Calculator has a section to fill in under the Current Loan button for termination fees. The calculator will take that amount into account when showing you how you can save money by switching home loans. Information about monthly fees can also be found by contacting your bank or lender about your current home loan, and details are also easily accessible online for Mortgage House’s financial product options. Some home loans may also attract application fees, package fees or rate lock fees depending on the type of mortgage you choose. Once again, all these details are easy to find with any Mortgage House home loan.

A handy tool to help you put all that in perspective is the comparison rate. Banks and lenders are required by law to advertise comparison rates alongside every regular interest rate amount, no matter what kind of interest rate loans they are. Comparison rates can take fees and charges into account over the life of the loan and make it easy to compare interest rates at a glance.

What’s the next step after using a switching mortgage calculator?

Once you have used our Switching Mortgage Calculator to get an indication of what you may save by switching home loans, and you have decided to go ahead with it, it’s time to get all your documents ready and make sure your financial situation is the best it can be. The first step in doing this can be to make sure your credit rating is strong. If you have ever applied for credit, whether it’s a mortgage, a car loan, credit card or even phone plan, you will have a credit rating. The better your credit rating the likelier it can be to have a successful home loan application.

Your credit rating takes into account the amount of times you have applied for credit and whether you have missed repayments or defaulted on loans. If you have a low credit rating then you may find it harder to get a loan, or you may have to settle for higher interest rates as banks or lenders mitigate against perceived risks.

Another thing to work through is that you have all your documents in order. This is especially important if you are applying for a home loan with a bank or lender other than the one you have your current home loan with. Documents you may need include:

  • Identification. You will need at least one form of photo ID such as a passport or driver’s license. If you only have one then you may need to supply a birth certificate, Medicare card, rates notice or utility bill as a second form of ID.
  • Income. Ideally, your past two pay slips with a letter from your employer stating how long you have worked in your current job is ideal. Make sure it includes gross and net income, as well as any regular overtime or allowances. Also include any Centrelink payments and, if you are self-employed, you will need tax information. Click here for more.
  • Expenses. Banks or lenders want to know, as accurately as possible, how much you spend on things such as rent or mortgage, electricity and gas and other bills such as school fees and child support.
  • Assets. At least three months of bank statements to show savings is a good idea, as is insurance details for cars or contents, and any details for shares or superannuation.
  • Liabilities. If you have a current mortgage, then at least the past three months of loan statements may be required, as will statements for other loans and credit cards.
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