How to Transform Your Finances by Switching Home Loans

In today's economic climate, switching your home loan to a new financial services provider may be a useful way to transform your finances — allowing you to renegotiate the terms of your initial home loan agreement, save money and enjoy benefits you may not have enjoyed before

If you're considering the option of switching your bond in the near future, here are some steps you can follow to transform your finances and make an informed decision.

• Check your paperwork

When you originally applied for a home loan and accepted the offer the bank extended to you (based on your unique financial situation, the property you wanted to buy and the bank’s decision-making process), you would have accepted certain terms and conditions.

As the first step to switching home loan providers, you should find out if there will be any penalties for cancelling your home loan with your bank. You could find that you can only cancel and apply to switch after a certain period or after you've made a certain number of payments or face a penalty fee. These fees could include bond registration or initial administration costs that were initially waived. Collectively those costs could run into the thousands.

Generally, when cancelling your home loan you need to provide 90 days' notice and give notice on an official business day.

• Explore your options

It's a good idea to consider all the home loan options available to you. This means exploring what other financial service providers can offer if you choose to switch to them. Ask for an obligation-free assessment. Then you can compare them and see which providers have the best offer. In some cases, you may also be able to access an online calculator to give you an idea of what you can expect to pay.

Also, pay attention to the value-added benefits that each potential lender offers you and how they compare to what you currently enjoy. Remember that there are more benefits to switching your home loan than purely financial ones.

It's important to remember that not only banks (such as the one you hold an account with and have your salary paid into) can offer you a home loan switching service. In fact, other financial services providers like SA Home Loans are great partners to consider, as we’re mortgage specialists who offer home financing solutions tailored to your individual needs.

• Determine your timing

Even if you find an ideal home loan offer you think you may want to switch for, remember that timing is a critical factor. Ensure your bond insurance and current home loan account is up to date, that your credit record is in a positive state and that the debt you have is in a good state (this debt can be consolidated during the switch if necessary).

Market conditions, interest rates and your personal financial situation can all impact the success of your switch. For instance, switching during a period of low interest rates can maximize your savings. As you consider your options, consulting with a specialist like SA Home Loans can provide you with personalized guidance and insights, helping you make the best choice. To get an estimate of what you could save with us, visit our website and use our switching calculator, or call us today on 0860 2 4 6 8 10 or request a Call me back  so we can answer any questions you may have