Refinancing Home Loan upon Build Completion

Lhodgeyhodgey on 08/07/2021 - 11:18

Would this be wise?

Our house has just been completed and our loan will soon roll over from a construction loan to a normal home loan @ 2.59% with redraw facility. This loan was procured through a broker. We are sitting at 80% LVR but as we signed contracts 18mths ago I'm hopeful that this would have reduced.

I'm currently wondering whether it would be worth trying to refinance elsewhere (this for example). Would this be seen as a dick move against the broker as I figure going it alone on this refinance would cost them their commission - as a side, the broker couldn't have been more helpful, I just know they have their affiliations and would more than likely not want to pursue something like TicToc.

Thanks all!

Financial Home Loan Loan

Comments

  • bemybubble on 08/07/2021 - 11:24
    +3

    The broker can't begrudge you for getting a better deal elsewhere. That being said good business involves giving them the opportunity to do better before you jump ship…

    • hodgeyhodgey on 08/07/2021 - 11:28

      Agreed - I wouldn't want to just walk out on them without giving the opportunity to get a better deal for us

      • bemybubble on 08/07/2021 - 11:30
        +4

        If you've given them an opportunity and it comes out worse off then as I said they can't begrudge that.

        Make sure it's worthwhile though - don't jump for chump change :)

        • spal on 08/07/2021 - 13:07
          +3

          This would be for me too. Most brokers are small businesses. If you have received good service, it is probably fair that you are considerate too. They did not treat you as a number, and numbers shouldn't be the only consideration. Looking that you have cared to ask this question, that shows that you do care and appreciate. But if they can't get you a better deal today, at least you have given them an option, and you take the business back to them too. These things change.

  • netjock on 08/07/2021 - 11:33
    +2

    Refinance. Better money in your pocket than someone else.

  • boomramada on 08/07/2021 - 11:57
    +3

    if sums are on your favour, why not. I have done that. For bank, you are just a application.

  • CodeXD on 08/07/2021 - 13:14
    +3

    we signed contracts 18mths ago

    18 months so it has been a while. Definitely have a chat with your broker and see whether there is anything they can do to reduce the rate if it is variable. If fixed, then there'll be a fee to break contract.

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