Switching Mortgage Lenders When Refinancing: Should You Do It?

Struggling to meet mortgage repayments due to the consistent rise in interest rates this past year? Thinking of switching mortgage lenders at the same time? Don’t worry, you’re not alone.

Lots of homeowners are rethinking their mortgage arrangements to give them the breathing room they need in these trying times. Many are also wondering if they should change mortgage providers, too. Should you follow suit and change home loan providers along with a refinance?

Contemplating the idea of refinancing does bring up the question of whether it’s best to stick with your current lender or to explore the option of switching to a new one. In this article, we’ll look into the intricacies of this decision-making process and weigh the benefits of familiarity against the potential advantages of a fresh start.

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Good Reasons to Refinance

Refinancing your home loan can be a strategic move, particularly when you’re trying to avoid defaulting on your home loan or when you’re finding it hard to balance your budget. Trying to stay afloat isn’t the only reason why refinancing is considered by many however, as there are a few other reasons for it. Here are some of them:

Lower Interest Rates

Refinancing to a lower interest rate can lead to reduced monthly payments and substantial savings over the life of the loan. This is particularly advantageous when prevailing rates are significantly lower than the rate on your current mortgage.

Stabilising Payments with Fixed-Interest Rate Mortgage

Switching from a variable-interest rate mortgage to a fixed-interest rate mortgage period provides predictability and shields you from more rate fluctuations in the near future, like the one you’re seeing now. This stability can be especially beneficial if interest rates are projected to rise further in the coming years.

Improved Credit Score

If your credit score has improved since obtaining your original mortgage, you might now qualify for better terms and rates. Refinancing with a higher credit score can lead to more favourable loan terms despite the prevailing interest rate environment.

Debt Consolidation

Refinancing offers an opportunity to consolidate high-interest debts, such as credit cards or personal loans, into your mortgage. By doing so, you streamline your debt structure and potentially save on interest costs while benefiting from a single, manageable payment.

Access to Equity for Investments

Refinancing can allow you to tap into your home’s equity, providing funds for investments such as stock investing, education, or starting a business. Even in a high-interest rate environment, leveraging your home’s equity for strategic investments can yield favourable returns.

Change in Financial Goals

Your financial circumstances and goals may evolve over time. Refinancing offers a chance to align your mortgage with your current objectives, whether it’s shortening the loan term to pay off the mortgage faster or extending it to lower monthly payments.

Consolidating Multiple Mortgages

If you have multiple mortgages on different properties, refinancing can consolidate them into a single mortgage with potentially better terms. This simplifies your financial management and can be advantageous regardless of interest rate fluctuations.

Renegotiating Loan Terms and Features

Refinancing allows you to renegotiate various aspects of your loan, such as extending the loan term, changing features (like an offset account), or adjusting payment schedules to better suit your financial situation.

Investment in Home Improvement

Refinancing when you have enough equity for a cash out can help you with home improvement projects. If you choose wisely, the improvements on your home can help increase its value. This is particularly ideal if you’re thinking of selling your home sometime in the future.

Why Refinancing Right Now is a Good Idea

The allure of refinancing is often associated with low interest rates. However, there are instances when considering this option can be advantageous even amidst higher interest rate environments.

One compelling reason to refinance when interest rates are high is to transition from a variable-interest rate mortgage to a fixed-interest rate mortgage period. This shift can provide stability in payments for a few years, shielding you from potential rate hikes in the near future.

Another good reason to refinance even when interest rates aren’t low is when your credit score has improved since you obtained your original mortgage. This may qualify you for better terms despite the higher interest rate climate.

Also, worth thinking about is the chance to consolidate higher-interest debts, like credit cards or personal loans, into a single, more manageable mortgage payment. Refinancing will help you streamline your debt structure and potentially save you money on interest costs. So, even in times of elevated interest rates, a well-timed and carefully considered refinance can offer financial advantages that extend beyond the scope of rate fluctuations.

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When to Stick with Your Current Lender

While the prospect of switching lenders might sound enticing, it’s not always the best course of action. Before you think about switching mortgage lenders, it is worth a conversation with your current lender through a professional mortgage broker. Your existing lender might be willing to work with you to keep your business and an expert broker can reach out to your lender’s retention team on your behalf. Long-standing relationships with lenders mean SCF Solutions mortgage brokers can often get you a better deal than you trying to persuade your lender yourself.

A mortgage broker armed with information about how long you’ve been a customer and a desire to explore potential rate adjustments can often convince lenders to match or even beat advertised rates to retain your business, especially if they know you’re considering leaving.

Staying with your current lender can offer several advantages:

Familiarity with Your Financial History – Your current lender already has your financial history, which can expedite the approval process and reduce documentation requirements.
Smoother Approval Process – Staying with your current lender can result in a quicker and smoother approval process due to their familiarity with your financial situation.
Existing Relationship – Your current lender values your business and might be more motivated to work with you to offer competitive rates and terms.
Retention Incentives – Lenders may offer retention incentives to keep you as a customer, including rate adjustments, fee waivers, or other favourable terms.
Lower Fees – Some fees associated with refinancing, such as application fees or valuation fees, might be lower or waived altogether when staying with your current lender.
Minimised Disruption – Refinancing with your current lender involves less paperwork, fewer verification processes, and a smaller chance of disruption to your payment schedule.
Accumulated Payment History – Your payment history with the current lender showcases your reliability, which might strengthen your negotiation position for better rates.
Easier Transition – Staying with your current lender avoids the need to adjust to a new lender’s policies, procedures, and customer service processes.
Preserved Equity – Switching lenders can involve additional costs that could impact your equity, whereas staying with your current lender helps maintain your equity position.
Less Risk of Delays – External factors, such as unforeseen delays in processing, are minimised when working with a lender you’re already familiar with.

Reasons Why Switching Mortgage Lenders is a Good Idea

Now that you know what you can get if you stay with your current lender, you should also know why some homeowners choose to switch mortgage providers when they refinance. These include the following:

Competitive Rates – New lenders might offer lower interest rates and better terms, leading to potential savings on your mortgage payments.
Fresh Incentives – They often provide attractive incentives to attract customers, such as cashback offers, fee waivers, or discounted rates.
Diversified Options – When you switch mortgage providers, you’re exposed to a wider range of loan products, giving you the opportunity to find a mortgage that better aligns with your financial goals.
Updated Features – They may offer modern features and services, such as digital banking tools and flexible repayment options, enhancing your borrowing experience.
Lender Competition – Leveraging competition among lenders can provide you with negotiation power to secure better rates and terms.
Fresh Start – Changing mortgage lenders allows you to start anew with a clean slate, potentially erasing any negative experiences or past issues with your previous lender.
Consolidation of Services – Moving to a new lender could lead to consolidating multiple financial services (e.g., checking, savings, investments) under a single institution for convenience.
Access to Expertise – Different lenders specialise in various areas; switching might grant you access to specialised expertise tailored to your financial needs.
Potential for Better Customer Service – You might find a new lender that offers superior customer service and responsiveness, enhancing your overall experience.
Strategic Financial Moves – Switching mortgage lenders can facilitate strategic financial moves, such as adjusting the loan term or accessing equity for investments or renovations.

Seeking Professional Guidance Through Sunshine Coast Financial Solutions

Given the complexities and nuances of refinancing decisions, seeking professional guidance is a wise step. Sunshine Coast Financial Solutions’ mortgage brokers have the expertise that gives you access to tailored advice.

This will help you navigate the intricate landscape of refinancing and give you insights on which move is best for you. Whether you decide to stick to your current lender or want to learn how to switch mortgage lenders, our expert mortgage brokers understand that each situation is unique, and we’re committed to helping you make informed decisions aligned with your financial goals.

Switching Mortgage Lenders: Should You, or Shouldn’t You?

The decision to switch mortgage lenders when refinancing can be tempting, but it isn’t your only option. Looking into the pros and cons of such a move will help you make an informed decision that can greatly benefit you.

Regardless of your choice, seeking professional advice from mortgage brokers here at SCF Solutions can help ensure that your refinancing decision aligns with your long-term financial objectives. Making an informed choice, after all, is key to securing your financial well-being.

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Chris Wilson

Meet Chris Wilson, the heart of Sunshine Coast Financial Solutions (SCFS). With over a decade of experience in finance, Chris started his journey as a broker with Aussie Home Loans in 2009. His dedication earned him the title of Rookie of the Year in 2010. By 2011, he was ready to build a business based on trust and strong partnerships.

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John Stevenson

Absolutely outstanding service. Our needs to re mortgage were far from simple yet SCF Solutions didn’t give up and persevered. Saying they went above and beyond would be an understatement. Would highly recommend their services again and again. Thanks

Cassie Morris

My husband and I just bought our second property with the guidance of SCFS. Chris, Adam & Shanina are all incredible at what they do which made the finance side of our purchase simple. They are always willing to go above and beyond for their customers and answer any question, no matter how small. We wouldn't use any other mortgage broker for our finance needs. Highly recommend!

Anthony Fox

Excellent experience with our finance requirements. Would highly recommend.

Liam Kelly

We are completely satisfied with, and trust this company to have our best interests at heart, so much so that we have recommended them to others who have then went on to do business with them.

Sara Williams

We called Chris out of the blue and wondering if there was a clever way to secure finance for a dream house. Chris was friendly, approachable and straight away was able to offer solutions for our situation. He and Adam kept us up to date, were so easy to deal with and genuinely felt like they were on our side working with us for the best outcome. We have been very impressed and would highly recommend Chris, Adam, Shanina and the rest of the team for any finance needs. Thank you team for all your help.

stephen waterson

Amazing crew to deal with. Always prompt and helpful. Their communication was outstanding and it was an absolute pleasure to deal with everyone involved.
Don’t hesitate to put your trust in these guys. They are very professional and very good at what they do. 10/10

Emma Hagan

Deanna Chelepy

Always a pleasure dealing with Daryl and team. Always prompt, efficient and helpful working towards best outcomes for us. It is greatly appreciated. Thanks team!

Hayden McKelvey

Highly recommend Adam at SCSF he made the whole loan process hassle free and their communication during the entire time was excellent.

araiza ariza

Thanks to SCF for their unwavering support throughout our home loan journey. As first-time homeowners, the process felt overwhelming at times, but the team ensured that every step was covered and guided us toward the best loan option. They were incredibly attentive to every detail, always ready to clarify anything we needed. Working with them made us feel supported every step of the way. A special thank you to Chris, Adam, and Shanina for their exceptional help.

Michelle Mazlin

Chris has been amazing in helping me secure a huge decrease on my home loan interest rates. There is absolutely no way I could have achieved that without his advice. No only is he knowledgeable but incredibly friendly and an absolute pleasure to deal with. If I could give 6 stars I would 😊

Asha Kay

I highly recommend Chris and his team! They have helped me twice in the last 3 years and I cannot thank them enough!

Ryan Jones

SCFS are brilliant. Chris and the team have been exceptional every step of the way and have really made things easy for us. Super efficient and generous with their time. Highly recommend!

Ashley Schmerl

Exceptional communication and highly efficient. Slightly complex case with one applicant PAYG and another being paid through owned businesses. Able to provide clear advice and guide us through the process when other brokers (including a bank directly) made it far more difficult. Approved within 2 days.

Sophia Tapp

The whole team at SCF Solutions always exceed our expectations. everything is always taken care of in such a professional and punctual matter, and they always have your best interest at the forefront of any transactions. Would highly recommend their service. 10/10

Sarah Foster

I've been using Sunshine Coast Finance for a number of years over which time they have taken care of the finance for 3 properties. I can't recommend them enough.

Helen Hawksworth

Great! They got the deal done and over the Christmas break. Really good communicators and appreciated the initial Zoom meeting at a busy time and the continued easy, fast responsiveness.

Cheryl Southwell

Adam is fantastic from beginning til the end. No question or multiple phone call was a problem. Comunication and organising documents was timely. We are very grateful for helping us get our Loan. I give Adam and the team from SCFS 5 🌟

Tam

Great to deal with. Good communication and understood our situation and helped us achieve our goal. Made things so much simpler.

Jessica Wilson

Chris and Daryl were a pleasure to deal with - attentive and on the ball. Both Extremely knowledgeable, they helped me select the right bank that would suit my individual needs. Thank you!

Daynah Lawrence

Once again, Chris and his team have gone above and beyond to achieve our goal. It was a stressful round this time, but the team worked their magic again. Special mention to Adam, this is the first time dealing with him, and he worked quickly, kepted us well informed the whole way and communication was excellent. Thank you again SCFS, you know we will be returning customers.

Joanne Sansom

Can highly recommend Chris and his team at Sunshine Coast Financial Solutions. Chris always provides a prompt and professional service, nothing is ever too much trouble and always goes above and and beyond. Chris is extremely down to earth and explains things in simple terms. Thanks Chris for all your help you have provided and will most definitely continue to use you and recommend you.

Jess paton

Cannot recommend SCF enough!!!

2 years ago i reached out to the team hopeful to put a plan in place thinking we could purchase in a few years, only to find we were closer than we thought possible.

The staff provided the info and game plan we needed.
The process rolled so smoothly when we touched base a couple of months later. The team at SCF all played their part to make the process seamless and worry free.
We are now the proud home owners of a house in an area we dreamed of Sunny Coast

Fast forward to a few weeks ago I contacted SCF and the team were yet again proactive and efficient with coming up with a solution to our request which again happened sooner than imagined and were able to refinance to reach our desired outcome come .

Thanks so much Sunshine Coast Financial Solutions!

Jessie Binns

The team at SCFS helped us to buy our first home and we couldn’t be more impressed with the service. Chris, Adam and Shanina were extremely knowledgeable and always available when we had questions, and they worked with us to find a finance solution that was tailored to our needs. We are so grateful for their services + would definitely work with them again in the future!

Kerry Fulluck

Would highly recommend Adam, Chris and the team. Efficient, professional and excellent communication. Thank you

Donnie Dee

Very pleased, efficient, transparent and supportive! Thanks Guys.

Min Jung

Working with Chris and Adam from Sunshine Coast Financial Solutions has been a breeze! They made the whole mortgage process super easy, offering great advice and always being there to answer any questions. Their expertise and friendly approach took the stress out of it all. Highly recommend them!

john maxwell

Always had a good service from Chris and his team. They’ve sought out the best deal for our family. Highly recommended.

Mick Hills

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We had an excellent experience with Adam from SCF Solutions! He made the entire application process smooth and stress-free, showing an incredible level of knowledge and professionalism throughout. Adam’s expertise really stood out as he navigated us through a tricky financial situation with ease, finding a solution that worked perfectly for us. We couldn’t be happier with the outcome and highly recommend Adam and the team at SCF Solutions to anyone looking for expert financial assistance.

Emelia Morrell

Huge thank you to the team at SCF! Chris, Daryl and Shanina made purchasing our first home an absolute breeze and put our minds at ease with their expertise! Definitely recommend them to anyone! 🌟🌟🌟🌟🌟

Andrew Rogers

The service and experience the team provides, has been amazing, professional and smooth, Chris, Daryl and Shanina have been a absolute pleasure to work with during what should be a stressful time but completely took all of the stress and guess work out of the experience. I highly recommend the team and look forward to working with them again in the future. A+++++++…

Andrew Pearson

Chris and Daryl were fantastic from start to finish. Chris worked through multiple options with us over 12 months and when we finally found our perfect first home, he and the team were there to provide expert advice to get us over the line. The process was simplified and we felt confident in the teams hands.

Sally Rogers Keating

Always an amazing experience! Supportive, knowledgeable and professional. Nothing is too much for Chris and his team. Always happy to provide assistance in anyway possible. Special thanks to Adam & Shanina! I look forward to working with the SCFS team for all my future financial needs.

Casey

We have had multiple dealings with Sunshine Coast Financial Solutions.
Chris and the team have always been very helpful and transparent through the whole process.
Would definitely recommend.

Phil Cheetham

K k

Thanks once again to Chris and his wonderful team for a smooth and beneficial refinance, we're always happy with the knowledgeable advice and help we receive thanks SCFS!

Dylan Johnston

Recently dealt with Chris and Adam with respect to my finance application. My personal circumstances had changed from being an employee to then being self employed with only had received 3 months of dividends. Chris and Adam were able to work through this challenge and find me an excellent deal and got the job done. I cannot recommend a better team. I will be no doubt referring friends and colleagues to the Sunshine Coast Financial Solutions team!!

travis woodward

Very proffesional and courteous staff , always a pleasure to deal with.
Chris goes above and beyond to make sure you get the outcome your looking for and has delivered for us every time

Gemma Shipley

Can't fault the team at SCF. They helped us every step of the way and made sure we understood the whole process throughout. Friendly and professional, I would highly recommend them.

Robert Johnson

Adam and Shanina made the whole loan process hassle free and their communication during the entire time was excellent. We highly recommend the whole team at SCSF.

Rachel Hull

Chris and Adam were so helpful and professional. Continual follow up and delivery while setting clear and accurate expectations. Excellent follow up and communication made our process seamless. We really appreciate your time, advice and service thank you.

Justin Cardell

Highly recommend the team at SCF Solutions. Chris, Daryl and Shanina we're awesome to work with, helping us get our new home loan over the line.

Vanessa Cera

Best in the biz! We can't thank Chris, Daryl, Shanina and the team at SCF Solutions enough for helping us secure our new home loan. From start to finish they were very pleasent to deal with. Well done, team!

Kelly Gijsbertsen

Highly recommended.
We had never owned a house and new to the whole process including First Home Owners Grant.
Everyone in this office made this process very easy and simple to understand.
Couldn’t recommend a better company to assist anyone buying their first home.

Sue Gaskell

I've now used Chris, Adam, Shanina, Tracey and the rest of the team at SCF Solutions on a number of occasions. They make the process of obtaining a mortgage - whether new or refinance - so easy and streamlined. They kept me well informed of the process; let me know what the next steps would be and timeframes and were absolutely amazing to deal with. I wouldn't hesitate to use them again or recommend them to others. Thank you team :)

merryn hughes

Highly recommend Chris and team!! Professional, very friendly, always helpful and awesome service. Always go above and beyond to ensure we are looked after, got the best product for our needs and that we understand the details. Always impressed and satisfied!

Countryview House

Always a fantastic experience with the team at SCFS. We’d never use anyone else.

Brittanie English

Adam and the team at SCF worked quickly to secure our home finance and ensure it was the right loan for us. The team are responsive and professional.

Tamara White

The team at Sunshine Coast Financial Solutions were amazing to deal with. In a time when the financial side of things were getting tough they were able to put us in the right direction and then make it all happen. I would highly recommend SCFS.

Tana Peckham

Great follow up service. Tracey reviews our loan every year by approaching our lender and asking for a better offer and checking that we are paying the lowest rate. Saved us thousands!

Switching Mortgage Lenders When Refinancing: Should You Do It?