Breaking you home loan rate can come at a cost(break fee), however it can still make sense to do this. Generally only due to the fact that some banks will pay you money to come to them, effectively subsidising the cost of moving to a lower rate. There are a couple of other factors to consider however.
Costs
Firstly moving banks also can mean legal fees in excess of $1,000. So getting a fixed price quote is a good idea. Generally most banks will require you to return the cash incentive back to them under certain conditions. Such as selling your home or refinancing within the first few years.
Support
Changing account numbers and direct debits can be made easier by certain banks. A switching service maybe available which means direct debits and autopayments are moved over automatically to the new account. Also by using a nice mortgage broker like us, the application process can be a bit simpler. As we can do the shopping at multiple banks for you. A free cost benefit analysis such as the one used in the clip above, is also available by contacting us.
