Decide for yourself why you wish to refinance – unless you are clear about your reasons you may not make the best choice. Make sure that you will be better off after taking into account the costs associated with switching your loan.
 

Try to get a loan with the lowest interest rate possible, however sometimes additional loan flexibility will save you more than a lower rate. This again comes down to the understanding of your refinance requirements.
 

What loan features should you look for – generally speaking the extra costs associated with the fully featured loans more than make up by the savings they offer through additional re-draws, possibility of debt consolidation, etc.


The only rates worth considering are the True Comparison rates of the loan products you are considering. These rates are a true reflection of the cost of the loan.


Make sure that you are able to make additional repayments with your new loan. Some loans will not allow you to reduce your loan balance for up to several years. This is common to fixed rate mortgages. The savings from a lower rate may prevent you from reducing your loan balance.


In working out your loan affordability, factor in potential further rate increases. Nothing is worse than being caught ‘unprepared’


Make sure you understand your credit rating. Your credit rating will have a lot to do with whether you are able to qualify for the mortgage of your choice. It needs to be guarded and protected. If you are unsure as to what is written on your credit report it is a good idea to obtain a copy of the report before considering refinance


Look at the on-going loan fees. These can add thousands to your mortgage repayments and years to your mortgage.