Key aspects to consider

To help you make an informed decision about refinancing, we’ve listed some of the key aspects that are worth discussing with your lender or broker before you agree to take up the new loan.

Use the Comparison Rate to evaluate different loans

Along with the headline interest rate charged on a loan, you may also be charged a range of upfront and ongoing fees. These fees can make it harder to compare between loans, and this is where the ‘comparison rate’ is so helpful. It includes the ongoing interest rate as well as any application fees and regular loan fees. This gives you a clear idea of the true cost of a loan and lets you make a more accurate evaluation between lenders.

Be sure you understand any other fees that may apply

The comparison rate does not include all fees. Other fees you could be up for include:

  • Government and statutory fees – although these are standard across all lenders and loans
  • Lender’s Mortgage Insurance or valuation charges
  • Event based charges, like redraw fees

Even where you may have no immediate plans to use a feature that comes with a fee – for example, redraw, it’s still important to know any fees attached to the loan. You may use these features in the future.

Look for additional benefits offered by the loan

Some home loans offer additional options like a repayment holiday, which can be useful if you’re planning a career break after the arrival of a new baby. Or you may be able to make interest only repayments for a set period, freeing up cash to use elsewhere.

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