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Everyone needs to check from time to time to see if their mortgage loan is offering them the most cost effective product for their current situation.

Time to Get a Better Deal

Change Lender

Change LenderEveryone, including finance brokers, needs to check from time to time to see if their mortgage loan is offering them the most cost effective product for their current situation.

Mortgage products change and evolve depending on competition in the market place and economic conditions at some exact point in time.

Universal Wealth Management may be able to save a great deal of time and money by checking to see that if a current loan is the most appropriate residential or commercial mortgage loan for a given situation in now time.

Our finance broking service will minimise, the time consuming task of shopping for finance and the nerve-racking ordeal of interview after interview and sales pitch after sales pitch from sales driven credit providers.

If the current lender is offering the most effective loan product we will confirm that. If we believe that there is a better option we will say so. Being informed about options encourages a decision on whether a change of lender is appropriate or happily stay put for now.

A flexible competitive mortgage loan that we can arrange may save money in interest, repayments, fees and charges.

The main reasons for changing a current credit provider or refinancing are:

  • To move house - Buying a new home is the most common reason people seek to refinance their current mortgage as they are usually upgrading to a more expensive property and borrowing to cover the shortfall.
  • Interest costs - People refinance into a lower interest rate product that they may not have previously known was available or they did not know that they qualify for.
  • To reduce monthly repayments - Situations change by extending the term of the loan monthly repayments can be reduced or a lower interest rate product will reduce monthly repayment commitment.
  • To pay off other debt - Consolidation of debt. If someone has other debts such as credit cards and personal loans, it may be beneficial for them to refinance these loans into one loan. This may reduce their repayment commitment. Credit card and personal loan interest rates are usually higher than mortgage rates so the borrower may save money by paying off these other loans.
  • To use existing equity to borrow more - For most Australians the family home is their biggest asset and source of savings. The improved value of the family home together with the amount paid off a mortgage can be used to create wealth by using the asset to borrow money to invest in other assets that can produce capital growth, over time, and income.
  • To demonstrate dissatisfaction of service levels delivered by a current mortgage provide.

The cost of changing credit provider can add up and needs to be considered to see if refinancing is of benefit. Costs for ending a current loan and costs for starting a new loan may include:

  • Break costs - terminating a fixed loan (this may result in a payment to the lender or a payment from the lender depending on the interest rate the lenders formula at the time).
  • Deferred establishment fees - ending a loan within a certain period of obtaining a loan usually 0- 5 years.
  • Mortgage discharge fee - an administrative cost.
  • Establishment or Loan Application fee - cost for applying for a loan.
  • Legal fees - may be charged for legal document preparation.
  • Settlement fee - a fee for attending settlement.
  • Valuation fees - to establish value of property to be refinanced (if not included in establishment fee charged by the new credit provider).
  • Lender's Mortgage insurance - payable if borrowing more than normal lending margin of the value for a property.
  • Ongoing fee - a monthly fee for having the loan - this may or may not apply depending on the new loan product and may be the same as the existing loan.