If you want to break free from the dreaded monotony of your current mortgage, we have good news: changing your home loan is possible. And it’s not as scary as it seems.

In this article, we’re bringing up when and how to switch up your loan and be sure the process doesn’t have to be painful.

Reasons for changing home loans

Whether things force your hand to snatch more flexible payment terms or a better agreement overall, the primary step is understanding your motivation. Take a hard look at your current circumstances. By replacing your old loan with an adjusted one, you may then see improvements in:
• Better interest rates – When interest rates drop, this can lead to plenty of savings, making the switch a favourable option for homebuyers using loans with extremely high rates.
• Optimised repayment options – Your loan may be insufficient or give you zero flexibility regarding repayment. Changing your home loan can give you more suitable repayment options that work for your current situation.
• Debt consolidation – Switching up your loan may let you cut down on other debts or consolidate them into one simple-to-manage pack.
• Chance to tap into equity – Your share of your home’s equity makes you a good candidate for home equity release. You may apply for one for the lowest rates and fixed terms.
You can surely haveother reasons for changing your home loan. After discovering them, your next step is to single out the right lender with the help from us.

Choosing a lender

Finding a lender is crucial for getting a deal that doesn’t rob your family of your welfare. We will assist you and provide advices on 3 major aspects when it comes to selecting the right lender:

1. Pros and Cons of each lender’s service and the products provided. Look at minimum prime rates. Factor in costs like application fees. Compare repayment conditions.
2. Eligibility criteria and loan amount assessment. When preparing for changing home loans, homeowners should read up on the prerequisites and credit score requirements. You can only apply once you know you can qualify.
3. Repayment options. Different home loans come with different terms, Some lenders may lure you with flexible repayment options, whereas others may adjust the rates in your favour if you want to pay down your debt faster.

The last piece of advice? Calculate the overall costs to ensure the value of changing home loans is worth it and that you are not going to lose money by making the switch.

If you feel overwhelmed by the flow of information or the paperwork involved, you can always count on financial advisors from Prosperity Finance to guide your loan choice.