How to get better terms and conditions on your mortgage

Grass is greener ... it’s entirely likely that if you compare your mortgage with everything else that’s available, you’ll find something that looks better. Photo: Michele Mossop

KEY POINTS

  • Look for the true comparative rate – just because a loan has a lower headline rate than the one you had doesn’t automatically mean repayments will be lower
  • Another consideration is the terms of your existing loan: is there an early resettlement charge, penalty clause or discharge fee?
  • Remember that applying for a mortgage is somewhat painful, there’s always a need for documentation you don’t have to hand.
  • It’s always worth telling your existing lender that you’re thinking of refinancing, because you’d be surprised what response you might get.

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Chris Wright Smart Investor

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