1. The potential saving you can achieve
| Current home loan balance | Interest per month on current average variable rate, 4.3% | Interest per month on current leading variable rate, 3.79% | Potential saving per month |
| $250,000 | $896 | $790 | $106 |
| $500,000 | $1,792 | $1,579 | $213 |
| $700,000 | $2,508 | $2,211 | $297 |
2. The costs to change
If you are on a variable home loan interest rate, the costs to change are $700 approximately. This is made up of a $395 discharge fee with your existing lender and $365 (approximately) to deregister your mortgage with the land titles office of your current mortgage provider and register your new mortgage provider.
3. Time it will take
Switching your home loan takes approximately 30 days to complete. Most of your time will be spent collating documents and providing details of assets/liabilities and living expenses.
Steps involved in changing your home loan,
a. Prepare documentation such as ID, payslips and bank statements
b. Provide your broker with your latest assets and liabilities, income details and living expenses
c. From here your broker will lodger your application, arrange a valuation and all going well, have your loan formally approved.
d. You are then to sign mortgage documents with your broker
e. Your new bank will arrange to change over your home loan with your current mortgage provider.
Your broker will be able to largely take care of items c,d and e for you, so if you are prepared to provide the information required, the process is usually quite straight forward from then on.
Please feel free to get in touch, should you want to discuss any home loan related queries. We can also assist you with any business or commercial finance requirements you may have as well.
