Can I get a mortgage where I pay less than I’m paying now?
In almost all cases, yes. But if for some reason I can’t find you a cheaper loan, there was certainly no harm in trying. With lenders adjusting their rates outside of the Reserve Bank of Australia, now is a great time to shop around check that you have the right loan for your needs, I am a great starting point. It will depend what interest rate you’re currently paying, what type of home loan you have (e.g. fixed, variable, interest only, line of credit) and what features you want in your loan.
Can I consolidate credit card or other debts into a home loan?
This is one of the reasons many people refinance. The advantage is that you pay a much lower interest rate on a mortgage than for most other forms of debt—e.g. credit cards, overdraft facilities, personal loans etc. Providing you have sufficient equity in your property, you may be able to consolidate all your debt on a home loan. If you take this option though it is important to make sure you maintain your repayments at their current level or you could end up paying more over a longer period of time.
What fees/costs are involved in switching mortgages?
Penalty fees could apply if you’re paying off a fixed rate mortgage early, but it usually costs only a few hundred dollars in administrative costs to your current lender for a variable mortgage. But I wouldn’t recommend a loan where these costs are not substantially offset by repayment savings when you switch home loans.