Liberty reveals the true cost of refinancing to borrowers

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MELBOURNE, Australia, May 06, 2022 (GLOBE NEWSWIRE) — With talk of rising interest rates underway, borrowers may be tempted to switch home loans while rates are low.

But it’s important not to jump into a refinance without weighing the costs, warns Liberty, the leading non-bank lender.

Offering mind-free lending options in the Australian mortgage space, Liberty works closely with borrowers looking home loans to ensure that each customer receives a solution tailored to their needs.

When it comes to refinancing, borrowers should remember that switching to a new lender can reduce repayments and interest rates, but it can also result in a longer loan term.

According to Liberty’s head of consumer advocacy, Heidi Armstrong, refinancing could actually result in more repayments and more interest being paid over the life of the loan.

“Before you decide to jump ship, be sure to do the math to make sure your short-term gain isn’t a long-term pain,” she said.

In line comparison calculators can help borrowers check how much they will save if they make the switch.

Depending on the existing home loan, borrowers may have to pay significant fees if they move. Variable rate loans often have low or no release fees, but leaving a fixed rate loan can be expensive.

It’s also important to determine if the new loan has an application or set-up fee in addition to the new interest rate. While a lower overall interest rate is attractive, it’s important to add up all the costs to make sure it doesn’t cost more in the long run.

With a thorough understanding of home loan refinancing, a mortgage broker such as a Freedom Advisor can guide borrowers through the process to help them weigh the options.

Approved candidates only. Lending criteria apply. Taxes and fees are payable. Liberty Financial Pty Ltd ACN 077 248 983 and Secure Funding Pty Ltd ABN 25 081 982 872 Australian Credit License 388133, trading together as Liberty Financial. Liberty Advisers represents Liberty Network Services Pty Ltd ABN 65 151 158 628 Australian Credit License 408042, part of the Liberty Group.

Contact
Heidi Armstrong
Group Leader – Consumer Communications
Such. : +61 3 8635 8888
Email: [email protected]

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