If you're unhappy with your home loan, there are ways to get a better deal.
You could change the structure of your home loan or switch to a fixed rate home loan, but there are other methods that are worth taking the time to research.
1. Talk to your home loan provider
Home loans are a competitive product so providers are always looking to keep their customers happy. If you are unhappy with your home loan and are thinking of taking your business elsewhere, let your provider know.
But make sure you compare other home loans in the market first. Look at what’s available from other providers and take note of the features you like. Tell your provider why you are interested in a competitor’s home loan and ask your current home loan provider if they can offer you the same home loan features.
2. Use your super fund or union membership
Your superfund or union could unlock other financial savings.
An industry super fund or union membership can allow you access to very competitive home loans.
For example, ME Bank has recently slashed their Super Members Home Loan Standard Home Loan three year fixed rate loan to 5.39% p.a.(6.05% p.a. comparison rate*) for eligible super fund and union members. More than 5.5 million Australians are a member of an industry super fund – that’s almost 50% of the adult working population.
Mr Jamie McPhee, ME Bank Chief Executive Officer, said the current one and three-year fixed rates are the lowest available on the market and are available to eligible super fund and union members.
"For people experiencing financial uncertainty, a fixed rate provides the assurance their repayments will not fluctuate over the period of the term they choose.”
"Fixed rate home loans give customers the confidence to plan ahead, knowing exactly how their mortgage repayments will be made."
Related: How to compare home loan rates
3. Refinance your loan
If you have other debts such as a car loan or personal loan, it may be worthwhile to refinance. The great thing about refinancing is that you can combine your debts and obtain a lower interest rate so as to reduce your payments. You may also receive a discount on interest rates, loan service fees or monthly account keeping fees if you bundle all your banking with one institution.
By taking advantage of refinancing and consolidating your debts, you could use the savings gained to pay off your home loan in a shorter amount of time – saving you money in the long term.
Related: Hot Property Tips: Find a house and own your own home sooner
4. Go online
Some of the larger banks own subsidiary brands which are online-only. Online-only interest rates can be much lower than their traditional counterparts.
But make sure you do your research and don’t just look at rates. Whilst the rate will impact the total interest you repay over the lifetime of the loan, you also need to look at fees. And not just upfront fees involved with refinancing, such as an application fee, solicitor’s fee or valuation fee.
Check whether there are ongoing account fees and fees to make changes to the loan. You may be able to get a better and more flexible home loan deal if you know where to look.
The Moneyhound home loan finder tool takes into account all the upfront and ongoing fees as well as the interest rate when you compare home loans, helping you ascertain which home loan will cost you the least over your chosen term. Try it now, it's free to use.
[*Comparison rate based on a loan of $150,000 for a term of 25 years. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.]
Related: Lock in these rates! Before it's too late. Why you should think about a fixed rate home loan
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