Watch out for exit fees when you want to change mortgage providers.
Most bank and non bank mortgage providers now have exit fees built into their mortgage products. This means that if you refinance to a new lender your old lender will slug you a hefty fee to discharge your old loan. Exit fees of up to 4% of loan value are being levied by mortgage lenders.
Please read the fine print on your loan offer documents before you commit to a refinance deal, it may not be worth it to switch. A reputable mortgage broker will generally explain the hidden fees to you.
If you deal directly with a bank or one of their own mobile lenders, get a second opinion of their loan offer before you sign. These guy’s are under a lot of pressure to meet their targets and these hefty fees can be glossed over in the pursuit of a sale.
Get your mortgage documents out and have a read. Get a second opinion from a reputable mortgage broker if you are unsure or unhappy.