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Mortgage Brokers Spill the Beans About DIY Home Loan Refinancing

Announcement posted by Smartline Rockingham 19 Nov 2015

Mortgage brokers from Smartline Rockingham provide consumers with a DIY refinancing “road map.”
Rockingham, WA, 19 November 2015 - The mortgage brokers from Smartline Rockingham recently revealed a lot of “insider tricks” to consumers on their blog. In the post, called “How to Obtain a Better Home Loan through Refinancing,” they outlined five important steps that homeowners must take if they are going to refinance their home loans without using a mortgage broker.

Mortgage brokers do a lot of work behind the scenes. The post on the Smartline Rockingham blog gave some insight into how much work it is to obtain the right loan for the right person, whether it is a standard home loan or refinancing a current loan. They provided consumers with valuable information on how to find the right terms, conditions, fees and interest rates on a new home loan.

The highlights are below.

Due Diligence

It is important for the DIY borrower to do their “due diligence” before applying for a new loan. This involves getting to know the different credit products of the different lenders. Information is power when trying to find the right home loan for one’s individual situation.

Know the Current Mortgage

It may come as a surprise to some, but more than half of Australian borrowers don’t know the interest rate on their home loans. It is also wise to know if an offset account can be used to lower interest, whether or not there are fees for paying off the loan early and whether or not one can make larger payments without penalty.

Will Refinancing Save Money?

The amount of money saved on lower interest must be more than the amount the borrower will lose from the fees involved with ending one loan and beginning another one.

Compare Interest Rates and Fees

It is important to know the range of interest rates and fees that all lenders are charging. This allows the refinancer to set a “target rate” for refinancing.

Negotiation, not Capitulation

It is here that the mortgage brokers of Smartline Rockingham lay it all on the line. They recommend using all of the information from the other four steps to negotiate a new loan from the current lender. People who negotiate interest rates have the most leverage if they know exactly what the marketplace offers and make the current lender aware that they are not the least bit afraid to go elsewhere.

The Mortgage Broker’s Viewpoint

Justin Smith is the principal mortgage broker at Smartline Rockingham. He has more than 27 years of industry experience under his belt. According to Mr Smith:

“If you do all of these five steps and do them right, you may be able to negotiate a better rate for a new loan from your current lender. But we still think the correct way to get the right home loan is to go to a professional mortgage broker and let them do all of the work. In nearly all cases, the mortgage broker will get better results than you will, due to experience and knowledge of each lender.”

The mortgage brokers at Smartline Rockingham broker home loans in Rockingham, Kwinana, Baldivis and other Perth suburbs. They have been the most trusted mortgage brokers in Rockingham since 1999. They offer more than 300 different credit products from 28 different lenders. To learn more or for a free consult, call 1300 958 730 or visit their website: http://www.mortgagebrokersrockingham.com.au/.