Second Home Loans

Many Australians own more than one home in their lifetime. When it comes to selling one home and purchasing another, your experience the first time around should make the process a whole lot easier. Every time you buy and sell, the market will be different and finding the right home loan second time around will also be different.

Points to consider when choosing your next home loan.

1. Portability – if you are happy with your current loan, you may be able to take it with you. Find out if you can substitute a new property as security for your existing loan? There may be a portability fee, typically anything up to $500.
2. Size of loan – if portability seems like a sensible option, check with your lender about whether you can increase the loan amount or not. Some lenders allow you to transfer a loan only if it’s the same amount as your existing loan. A further restriction may be the need to settle on the same day for the existing and new properties.
3. New loan, same lender – if you feel a better product is out there, check with your original lender. You may be able to receive a discount or avoid some fees, particularly if you now use more products with the same institution.
4. Switching costs – to make sure you’re getting the best deal possible, find out whether the costs of paying out your loan switching lenders is going to cost more than remaining loyal. Try to negotiate with your lender.
5. Find another loan – do your research to find a loan that better suits your needs. You can always go back to your original lender, who may be able to match the offer.