Thoroughly compare loans

If you are determined to refinance, you should begin by calculating what your new monthly repayments will be as well as how long it will take to recover the cost of switching loans.

There are numerous free calculators online, but a good starting point is ASIC’s MoneySmart website mortgage switching calculator, which allows you to include fees and monthly charges.

A financial comparison should only be a starting point, though.

You should research your prospective new lender, especially if it is not a household name, and find out where it sources its funding, how long it has been lending and what customer support is available.

A simple Google search of your new lender might reveal any past disputes with borrowers, disciplinary action faced or issues concerning its financial stability.

This article was taken from Property Observer's free eBook: 12 tips for refinancing your mortgage.

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