This could assist in improving your cashflow position, particularly at times where we are in a rising interest rate environment. Banks are also offering cash back contributions to assist you in moving, which in some cases can be up to 1% of the loan amount. Further, with a little bit of advice to steer you in the right direction you could save even more and shorten the life of your mortgage significantly.
Things to consider when moving banks are:
Luckily, we can help you with all of this by putting it into a spreadsheet for you to review and see the cost/benefit of moving.
When you are looking at moving banks, if you have an existing mortgage in place on a fixed term, it is possible that your bank may charge you a “Break Fee” to get out of your existing Fixed Term Contract. The reason for this, is by you breaking your Fixed Rate, the bank incurs a real cost as a result, which is then passed on to you (they are not just simply trying to take more money from you).
In general, the longer the remaining time on your fixed mortgage, and the higher the rate (relative to current market rates – if switching to a lower rate), the higher the break fee. In an environment like now where interest rates are rising, break fees can be a lot smaller (if any).
Banks offer a cash contribution in many cases when you arrange a new mortgage with them. For all intents & purposes this is a gesture of a goodwill, and is like a gift which replaced TV’s and Holidays that they used to offer years ago.
The only catch with these, is that if you move banks in a short period of time (usually 3-4 years depending on the bank) the bank may ask for some or all of it back.
In many cases in today’s market, this could be up to 1% of the loan amount and is usually paid to you on settlement date or within a couple of days of settlement date.
Over the life of the loan are compounded by minor changes over time. In our free mortgage review, we can discuss how you can do this if debt-repayment is a goal of yours.
Saving a minor amount in terms of the interest rate can mean huge savings over the life of a mortgage, and also can make big differences to your monthly payments. This can mean you have spare income to either reduce your mortgage quicker, or have more discretionary income to spend elsewhere.
We can try to renegotiate with your current bank for you to see if we’re able to get better rates for you, so you don’t have to change banks if you’re already happy with your set-up.
If your goals/situation has changed, chances are your mortgage will need to be adjusted to fit your new situation (getting married, having a family, retiring, etc.)
My wife Jude & I have recently had a very positive experience with Kris Pederson Mortgages. Our refinance/borrowing to buy another property was reasonably complex & over two banks, Jessie Owen our account manager was incredible during this process. Her knowledge, patience & ability to get issues sorted as they arose was quite something to watch I would definitely recommend Kris & Jessie to anyone who is struggling with finance, that needs creative input or just a commonsense approach when dealing with banks requirements. Kris also provides excellent housing market updates via email & webinar. All the best with your journey
09 June 2026
We couldn’t have asked for a better team than Emily and Ryan to help us navigate buying our first home. From the initial stages to the final unconditional approval, they made a complex process feel incredibly smooth and stress-free. Their communication was top-notch, and they were always available to answer our questions and offer expert guidance. If you’re looking for a team that is professional, proactive, and genuinely cares about getting you the best result, look no further. Highly recommended!
24 April 2026
As a first home buyer, my wife and I did not know anything in regards to the process of buying a home, attaining a mortgage and how it all works. After reaching out to Kris Pedersen mortgages, they paired us up with Eddy who was with us the entire step of the way. Eddy was very thorough in both his pursuit of getting us a mortgage at the best rates possible, but also explaining the ins and outs of it in great detail but also in a way that made us understand how it all worked. We are very thankful for the work that Eddy put in to making this all happen, and I would highly recommend him and anyone else at the Kris Pedersen mortgages team for anyone looking to jump into their first home or any upcoming property purchase and needing a mortgage. Thanks Eddy!
26 May 2026
Wow we are impressed. Cannot recommend Kris Pedersen Mortgages enough. We have been dealing with Jessie on the purchase of our very first home and she has absolutely made an outstanding impression on us. Communication is impeccable, incredible knowledge and explains things so well from start to finish. Will absolutely be recommending to family, friends and business contacts in the future. Thank you guys! very impressed.
20 May 2026
I had a great experience working with Melissa throughout my property journey. From the beginning, she was professional, responsive, and genuinely helpful. She made the entire process smooth and stress-free, even while I was managing things remotely. What really stood out was her willingness to go the extra mile. She was always available to answer questions, provided clear guidance, and made sure everything was handled properly at every step. I truly appreciate her support and would highly recommend Melissa to anyone looking for a reliable and knowledgeable mortgage advisor. Thanks again, Melissa!
23 April 2026
