Refinancing considerations
Refinancing can reduce your costs, but only if the savings outweigh the cost of switching.
Start with your current terms
Note your rate, remaining balance, remaining term and when any fixed period ends.
Count the switching costs
These may include an early settlement fee from your current bank, new registration and valuation fees, and an arrangement fee from the new lender.
Compare total cost
Look at the total you would pay over a realistic period, not only the monthly payment. Extending the term can lower monthly payments while increasing total interest.
Timing
Reviewing a few months before a fixed period ends gives you time to compare options without pressure.
