stuckinblighty

Mortgages.

Is the Industry similar to here in blighty? Where you can chop and change your lender to get a better rate or are they all much of a muchness ?
Do banks do introductary offers to lure people in or are the rates pretty much the same everywhere?

Thanks

Lee

Wendy

You get a bit of everything really, just beware and read the small print.

For instance, some will have a tie in period, so if you change in the first few years then you will have to pay a penalty. Also some actually charge an application fee

If you don't have 20% deposit then there will also be a charge for insurance.

You also have to pay stamp duty on a mortgage when you take it out.

Mark_Rigby

Hi, you can get introductory rates, but there will be a higher penalty to close the mortgage within say the first 4 years, so they often work out to be more expensive than a non-introductory rate. Many here do refinance their mortgages to get better deals, or to get access to a loan feature that may save them money in the long term, but I don't think changing mortgages is a popular than in the UK. Some states (WA for instance) don't charge Mortgage Stamp Duty on a refinance of your home loan, some I think still do. So in WA, if you have no penalty on closing your old mortgage and no application fee on your new mortgage, you may only be up for $400-$500 to switch. But get a good deal on your first mortgage with a bank that has a good range of products and you may find you'll stick with them in the longer term. Send me a PM if you need more info.