Q: I keep reading that interest rates are at historic lows so I think it might be time to refinance. I’ve spoken with my bank but I’m not sure if they have offered me the best deal. Should I get a second opinion?
A: It’s true that interest rates are at historic lows. I haven’t seen rates this low or competition this strong in all my years in the mortgage industry; it really is a borrowers’ market.
If you’re thinking about refinancing, it’s smart to make your first call to your current lender and ask for a better interest rate. It’s not all about the interest rate though, so check that the home loan is still right for you, too.
There are dozens of lenders in the market and hundreds of different loans, so I think it is definitely worth getting a second opinion on your home loan. After all, if I didn’t believe that, Aussie wouldn’t be what it is today. Even if your current lender can offer you a lower rate, it doesn’t mean that there isn’t another home loan out there that’s more suited to you.
There are lots of ways to get a second opinion. You can go direct to different lenders, use online comparison websites, talk to friends and family or meet with an expert like an accredited mortgage broker.
If you’re still not sure whether it’s worth doing, take a moment to think about what else in your life you get a second opinion on, like where to go for dinner, your next holiday destination or the house you want to buy.
I really think you’d be missing an opportunity to potentially save yourself thousands if you didn’t get a second opinion. It doesn’t have to cost you anything or take a lot of time. A mortgage broker can even do the work for you.
After all, a home loan is one of the biggest financial commitments you’ll ever make, so why would you get just one opinion?
Did you get a second opinion on your home loan? Tell us your experience in the comments below.
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