Refinancing Considerations
What is a refinance?
Generally it means changing lenders
Why do I want to refinance
It is important for you to understand why you want to refinance – reasons may include:
- Existing loan products are not suiting your needs
- You feel you may be able to get a better interest rate
- Your existing lender is not providing the service levels you expect
When you feel you are close to a decision, take yourself back to these questions to ensure that your new lender can give you a positive outcome.
How much will it cost me to refinance?
Like any transaction you perform, the costs need to be considered. Some of the costs include:
- Early repayment fees – the cost you pay your original lender if you leave within a certain timeframe – this should be specified in your loan contract
- Break fees – this MAY apply if you are in the middle of a fixed rate term with your original lender
- Registration fees – these are government fees that apply when you register or deregister documents with the Land Titles. Generally when you refinance you incur 2 registration fees
- Application fees / valuation fees / settlement fees – your new lender may have fees which you may incur for setting up the new loan
- Mortgage stamp duty on the refinance – you need to be very careful to ensure you do not incur
- Mortgage stamp duty on the refinance – there are some structuring issues to be aware of. We will discuss this with you individually.
Shop around
If you feel that refinancing is the right option for you then start shopping around. As part of your research come and see Vision Home Loans. We will crunch the numbers for you and save you lots of time.
We will ensure you find the right lender and the right products as well.
Any guarantees?
Remember, even when you choose a new lender, there is no guarantee that they will approve the new loan for you. It is worthwhile coming in to ensure your new lender is appropriate.
