Remortgaging in 2021
A lot has changed in the world over the past year. The global pandemic has forced everyone to rethink their goals and plans, and homeowners are no different. You may have expected to remortgage your property to free up some money or get a better interest rate, but COVID-19 changed your approach.
What should you do now that things are beginning to improve?
Step One: Review Your Current Loan
As in any other year, your first step involves looking at the terms of your current loan. How does the interest rate you’re paying now compare to those available? The Australian government and most lenders have lowered their rates significantly to help the economy rebound from the pandemic. This may very well work in your favour.
At this point, you’ll also want to check for fees or any other penalties you might incur by ending your loan before the agreed-upon term.
Step Two: Compare Available Loans
Using our mortgage calculator or talking to Mortgage House representatives, you can get a sense of the options available to you and contrast them to your current loan. If new loans offer better rates and term, and they very well may after the pandemic, it’s time to make a move.
Step Three: Calculate Remortgaging Costs
As with your initial mortgage, you’ll likely need to pay fees to get a new mortgage. Look at not only the cost of ending your current loan but the price you’ll pay for inspections or other requirements of a new loan.
Step Four: Determine the Savings
After you look at the available loans and the cost of remortgaging, you can now figure out how much you’ll save each month. Divide the total cost of remortgaging by that monthly saving amount to determine how long it will take to break even.
If that break-even point is soon enough and you like the term of your new loan, then it’s time to get started.
Step Five: Contact Mortgage House
Once you know that you want to remortgage, the representatives at Mortgage House are here to help. We’ll find the best loan options for you and put you on the path to greater savings.