Switching your home loan

When looking for the best home loan deal in your country, their are a few common factors to consider:

- Look for the total cost of the home loan, commonly known as 'APR' or 'Comparison Rate which will include not just the interest rates but fees and other costs. In some countries, lenders provide facts sheets about the loan in a set format, so that it is easier to compare loans from other products.

- Ask your existing lender of your mortgage , by signaling your intention that you are planning to switch to another lender, they could offer you an alternative loan product at a discounted rate, or offer to reduce the interest rate on your current loan to keep your mortgage.

- Before you switch from your current provider, its important to calculate the costs of switching especially if you decide to increase your loan amount or LMI is more than 80%.

- If you decide to refinance consider than some lenders may only allow a longer term loan rather then the number of years you have left on your existing mortgage loan.

Why don't many people switch banks when lower rates for mortgages exist? Some of the reasons that customers seem reluctant to switch to smaller and more competitive providers seems to be that distaste for filling in forms as well as going to a new provider means proving your identity again and demonstrating ability to pay, job and spending and savings habits. Once switching is made easier with having complete account number portability, similar for mobile phone numbers it may drive a higher churn adoption and more people taking the step to change as there would be less of a need to re-establish identity and no longer need to speak to your old provider with the new provider switching everything across.