Having clients who want to refinance their existing home loan is a common occurrence for professional mortgage brokers. The problem with refinancing a home loan is that, in some cases, refinancing may not save your client any money after factoring in the fees and costs associated with doing so.
Common Refinancing Fees
Some of the most common fees charged by traditional lenders for refinancing are:
- Borrowing costs
- Loan application fees
- Exit fees
- Valuation fees
- Settlement fees
- Discharge fees
- Break costs
- Lender’s Mortgage Insurance.
- Redrawing fees
It is important to note that the lender’s mortgage insurance may be applied even if your client pays LMI on their current mortgage. Partnering with Mortgage Street may allow you the opportunity to negotiate and waive some of these fees when your client refinances.
Reasons your client might refinance
There are many reasons your client might refinance, including:
- To get a better interest rate
- To get better loan features, such as an offset account or a redraw facility
- They want to renovate their home
- They want to purchase an investment property
- They want to consolidate debt
- They want to access their home’s equity
- They want to pay off their home loan faster and reduce their loan term
- They want to have a fixed interest rate.
- Redrawing fees
Traditionally, lenders offer the best interest rates to new borrowers, meaning if your client is switching from a variable rate to a fixed rate, refinancing with a new lender may be in their best interest.
Partnering with Mortgage Street allows you to offer your clients the most competitive refinance home loan options for whatever reason they may want to refinance. After assessing your client’s situation, we can offer several more competitive products than their current home loan. Regardless of their financial situation, we have a variety of loan options that fit their current circumstances.