Is being loyal to your lender costing you money?

  • Posted 19 Sep

Is being loyal to your lender costing you money?

Everyone wants to save money.

Mortgage holders are often reluctant to change lenders – even though their current home loan may be costing them years of extra repayments in the long run and, even worse, money in their pockets now.

What is the benefit of loyalty?

Some borrowers feel a sense of loyalty to their bank – due to family ties or simply longevity of their relationship, but a move away could start saving them thousands over the life of their loan.

If you’re ready to speak to a home loan specialist, you can request a call back from one of our specialists here.

The amount you could save will depend on the outstanding loan amount, your loan to value ratio (find out how much your property is worth here) and if you require lenders mortgage insurance or not.

But, doesn’t it take a time and money?

For some, searching for a new loan may seem a huge undertaking (it’s not – most wish they’d done it sooner), or others might fear having to deal with banks and lenders in order to start saving.

You can start by finding out by requesting a property here, you can request yours in less than 20 seconds.

While it may seem like a lot of effort, in the end, the amount of savings per repayment from a lower interest rate and the help of a home loan specialist – you’ll end up saving both time and money when you switch loans.

In 2011 the Government introduced reforms to help borrowers switch between banks and to make the process of getting a better deal even easier.

We also have a wide range of calculators which could help you plan and visualise what you could save, our calculators can be accessed by clicking here.

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