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Is your money going up in smoke? Here’s how you could save on your mortgage
It’s worth taking a look…
BUYING A HOUSE is generally the most significant purchase most of us will make in our lifetime.
It’s a decision that’s made with a huge level of thought and consideration as it tends to involve a mortgage of at least 15-20 years.
But did you know that it’s possible to switch mortgages and make savings across the life of your mortgage? Not many people do, and it’s definitely worth checking out as the savings over the course of your mortgage could be significant.
It’s easy to see how much you could be saving.
For example:
You have a remaining balance on your mortgage of €250,000
Your house has a market value of €350,000.
Your mortgage term is 25 years.
Your current monthly repayments are €1,400 on a variable interest rate.Using the mortgage switching calculator, you could potentially save €121 a month or €36,440 over the lifetime of your mortgage if you switched to a lower interest rate.*
*Remember this does not factor in any additional costs. This example is for illustrative purposes only. Rates correct as of February 2016.
The switching calculator can show you all the results for the different lenders, so you can see if switching your mortgage to another provider makes financial sense for you.
Think you can make a saving? Here’s what to do next
If it looks like you can make a saving over the life of your mortgage there are a number of steps to take.
- Make sure you’re eligible to switch. There are a number of conditions to being allowed to switch – check them out here.
- Look into the cost of switching as a whole and make sure that with all the legal fees it still works out cheaper.
- If you are eligible to switch and it makes financial sense, then the process is much like applying for your initial mortgage. Apply directly to the lender or via a mortgage broker. You’ll need similar documentation to getting your mortgage (proof of income, proof of identity, proof of current address, bank statements for the previous 12 months).
Good luck.
Got any advice for those thinking of switching their mortgage?Let us know in the comments below.
If you think that you could be saving money by switching your mortgage head over to the Competition and Consumer Protection Commission and check out their mortgage switch calculator tool. There’s also lots of information about the next steps to take once you’ve decided to make the switch.
