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.
Kris has provided us with outstanding service as our mortgage broker.
Previously to Kris, we had worked with two brokers who both had excuses as to why they could not find us the finance we required.
Kris spent time understanding our goals and financial position and gave us plenty of finance options to consider.
Kris works hard to understand what finance options will work for each particular property and how to improve your borrowing potential for future purchases.
Kris has the all important ‘can do’ attitude.
I have recommended Kris to several of my investor colleagues.
I met Kris by recommendation a few months ago.
Since then Kris has helped me and my friends to obtain finance for various properties.
I enjoy dealing with Kris very much because he thinks fasts and acts promptly. He is also very experienced and upfront; he often can provide valuable advice on the spot, which I value a lot.
I recommend Kris to my friends without hesitation.
From working with and knowing many mortgage brokers, I know that many understand finance but have a poor comprehension of property investment.
With growing my investment portfolio I needed someone who understood both.
Your knowledge, the advice you imparted and speed at which things were put together were invaluable for me in securing my latest investment purchase.
Until my next one.
After trying for 2 months to get short term bridging finance through 2 banks and another broker with no result, I approached Kris and had iit sorted within days.
Very efficient and great communication.
I just wanted to let you know that Ryan Smuts has been fantastic to deal with. He is very pleasant and easy to deal with and keeps us up to date all the way about where things are at.
He has managed to pull off a loan approval when the banks are holding on to their money for life and look for reasons to shoot down loan approvals.
We are very impressed with Ryan and he is a great asset to your team.
Buying my house on my own was a pretty stressful process, Ryan and Serena worked brilliantly with me, my lawyer and banks to secure my new
mortgage and home on the same day as settling on my previous home! Highly recommend this team.