How can I refinance my basic variable home loan??

Hoju on 06/06/2014 - 21:41

Hey all. Totally clueless but keen for some help.

Our home loan is with AMP. 5.35% basic variable rate, no fees, with offset.
Someone told me today that our rate is pretty high, and after a quick search I can see it is. It was always one of the better rates a few years ago so not sure what happened… Ubank and Loans.com.au seem to be around 4.7%

Anyway, does anyone know how I can transfer my debt from AMP to someone with a more competitive rate?
Currently owe about $260K, and have $5k-10k in the offset at any one time.

One thing I'd like to do is basically keep my offset account, and if necessary a small amount of 'debt' at AMPs 5.35% - this way the countless things I have set up with direct debit and connected to my account can continue to operate fine. Is this possible? Effectively 'borrowing' $250k from eg. UBank or Loans.com.au at their basic variable and paying off my AMP debt with this? Or is it way more complicated than that?

Also, does anyone think AMP would drop my basic variable if I called them and said I'm moving to another bank?

Thanks heaps!

Financial

Comments

  • mskeggs on 06/06/2014 - 22:05
    +2

    So step one is to call AMP and tell them you are going to switch if they can't offer a better rate. My guess is they will offer you sub-5% straight away.
    If you aren't happy with what they offer, call a mortgage broker ( I am assuming you don't want to do the work yourself) and get the best deal with the features you want.
    Canstar list the loans so you can check your mortgage broker is on the ball/honest.

    • Hoju on 07/06/2014 - 06:21

      Thanks! I'll give it a go this Tuesday :)

      • StewBalls on 07/06/2014 - 12:10
        +1

        Don't stress about refinancing either, you'll be staggered by how easy it is compared to the relatively onerous process of obtaining a mortgage in the first place! :)

  • Baghern on 07/06/2014 - 14:55

    advertised rates are rubbished.

    We're living in the age of, if you don't do anything, we're going to slam you on prices…

    Full features, sub 5% is standard, usually you get them to wipe all fees as well

  • Hoju on 17/06/2014 - 20:57

    An update, thanks heaps Mskeggs for the tip!
    Just got a letter today confirming AMP are happy to drop my rate a full 0.5%.
    Basically I called them and said I was going to refinance, that I'd been offered 4.82% by someone… they said they'd be able to do 4.85% and have now confirmed it. Very pleased, thank you for the advice!

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