Browse Forums Home Finance 1 Sep 30, 2009 7:10 pm Hi guys We are currently got our home loan with a bank (not naming names) and it has been absolutely dreadful!!!!! I would love to go to my bank, who I have never had problems with but its gonna cost me isn't it? Has anyone done this before? I'd love to hear how it went and if it was worth the hassle? Thanks Re: Switching banks?? Can it be done? 3Sep 30, 2009 8:24 pm If you already have a mortgage with one bank and its been less than 5yrs, most banks have an early discharge or breaking fee which varies but can end up being a fair bit (we had a $2600 breaking fee on ours but were glad to get away from them ) Check your paperwork and look up 'breaking fees' or 'early discharge fees'. Caz & Co ALL MOVED IN!! Now comes all the hard work-decorating.... [b]Blog: http://cazoraz.blogspot.com/ Settling in Thread: viewtopic.php?f=31&t=36993 Re: Switching banks?? Can it be done? 5Oct 01, 2009 2:43 am Hi Robenna, I concur all of the above. First read the early repayments cost section of your loan agreement and also check how much you paid in Mortgage insurance premium. Depending on the LMI provider you can have about 40% of your premium refunded if you discharge your mortgage in the first 12 months. So that may assist in determining the time of your refinance. Also when you apply for refinance you will be limited to a certain ratio of your property's value. There are a lot of other issues at play but I hope this provides a good intro. Re: Switching banks?? Can it be done? 7Oct 05, 2009 12:44 pm Helyn Our credit union does not have any break fees for early pay out - you may be lucky and have a financial institution like this too, worth checking Yes there are a few lenders that do not have early repayment fees, (aka. deferred establishment fees). These fees typically apply if you discharge your mortgage in the first 3-4 years of your home loan. They may range from $600 to $1500 or with some lenders up to 2% of your original home loan amount (OUCH!) Re: Switching banks?? Can it be done? 8Oct 08, 2009 8:48 am Quick answer- YES. Go to you preferred bank and ask what the setup fees will be. Bargain with them. They will discount if they want your business. Do this first. Then approach your current bank and ask them what the payout fees are as you want to change banks. Tell them the deal you have. They may reduce fees/interest charges to keep you. If you still want to move work out how much it will cost you. Keep in mind if you get a lower interest rate or lower fees you will save more in the long run. Good luck. Re: Switching banks?? Can it be done? 9Oct 13, 2009 2:00 pm Refinancing for a small rate cut may not be a prudent decision these days. There is a possibility that lenders may raise rates over and above any Reserve Bank rises (just need to remember 2008) and if the bank you refinance to happens to do this you may be worse off. Re: Switching banks?? Can it be done? 10Dec 02, 2009 12:31 pm thlo Refinancing for a small rate cut may not be a prudent decision these days. There is a possibility that lenders may raise rates over and above any Reserve Bank rises (just need to remember 2008) and if the bank you refinance to happens to do this you may be worse off. I don't like saying "I told you so" but SkyNews Westpac's rise shows lack of competition Westpac's hiked its standard variable lending rate by almost double the amount of the central bank's increase. Australia's second biggest home loan lender yesterday delivered a bigger than expected interest rate rise, announcing it will increase its standard variable home loan rate by 45 basis points to 6.76 per cent. It means repayments on a $250,000 mortgage will increase by about $71 a month. Westpac's move came after the Reserve Bank delivered its third official cash rate rise in as many months, lifting the cash rate by 25 basis points to 3.75 per cent. All other major and regional banks left Westpac to take the heat from the expected negative publicity, simply saying their rates are under review. Analysts say Westpac's demonstrating the pricing power that the big four banks have due to reduced market competition. I work with owner, he/she is my man on the ground and I instruct them when to visit the site and take photos and I have other tools in the bag. 4 15265 Depends what you're current inclusions are, but we're not including wardrobes and will just use second hand ones until we can save later on to get them built. Also have a… 3 11630 I am in the same situation, would you be able to give some insights in to this? I am in SA 8 17047 |