One of the most important factors in any mortgage are the costs involved. The largest cost is normally the interest rate that is attached to the home loan.

If you don’t know what interest rate you’re currently paying, it should be listed on the statement. Otherwise, you can contact the lender directly.

It’s also worth noting the other costs that are involved, such as any annual fees and charges. At the same time, you will also need to consider the impact of other loan features, such as an offset account, because it could be saving you quite a bit of money.

If you’ve been with your lender for a reasonable length of time, they might potentially drop the interest if you simply ask. No lender wants to lose a customer, so if they can bring their rate down slightly, it could be a win-win situation for both of you.

It is worth noting that the interest rate is only one element of a good home loan product, so make sure you also take additional features into consideration.

When it comes to refinancing, it’s not always just about how much money you are likely to save. Some home loans can come with significant termination costs, and that is something you need to know well in advance.

The most common trap is if you are on a fixed rate home loan, in which case there could be costs that run into the thousands, if you want to change the deal.

As mentioned, refinancing isn’t all about the interest rate. You can also refinance if you want to cash out some equity, improve the terms of the loan, get improved loan features, or consolidate debt. 

It’s worth considering your own financial situation here as well. If you were in a high-paying, full-time position when you took out your home loan the first time, refinancing might not be possible if you’re now out of work.

If you are simply looking at interest rates, don’t get fooled by very low introductory rates, as they will generally adjust upwards after a certain period of time. 

It is worth consulting your mortgage broker, who is the best person to be comparing your needs with the current home loan market.

While there might be costs that come with exiting your old loan, there will almost certainly be fees involved in applying for a new home loan. There are also other considerations, such as the costs involved in getting a bank valuation.

Some lenders might offer a refinance cashback, but it’s worth assuming that there will be things like application fees and valuations involved.

By this stage, you should have a few good ideas about the lender you want to go with, the type of loan you are looking for and also the likelihood of it being approved.

Your mortgage broker is the one who can handle all of this for you, and the fact that they normally have very close relationships with lenders means that they can get you matched with the right product.