Watch Out for the Exit Fees

Potentially, you can save hundreds of dollars a year simply by refinancing your current home loan. Even reducing the interest rates you are paying by just one percent can make a huge difference to your annual repayments.

In an attempt by many lenders to keep you as a customer, contracts include often high exit fees. The exit fee is the amount charged the homeowner when they pay off their loan. This is done in order to prevent people from switching lenders, and is often regarded as a hidden cost. Mortgage lenders implement this fee in order to cover the administrative costs involved with closing a mortgage account.

The charges might also be intended to discourage homeowners from constantly refinancing their mortgage in an effort to take advantage of the many competitive short-term loans available.

It is very important to be conscious of exit fees while searching for the mortgage which best suits your needs. This is yet another reason why independent mortgage brokers are an asset worth utalising. We only look out for the interests of the customers, and have the knowledge in the industry to save you both the inconvenience and expense of hidden charges such as exit fees.