Switching Fixed Mortgage Frequently

LHarveyS on 01/07/2021 - 23:25
Last edited 02/07/2021 - 09:39 by 1 other user

Hi There,

I am long term follower and I just have to create an account as I am in financial dilemma.

What are the disadvantages of breaking the fixed mortgage other than the break cost?

Situation. Mortgage started first time as a 2 year fixed, broke and refinance after 21 months.

Its been 10 months with the new lender for 2 year fixed mortgage. Although I am on better rate but I am pissed off with the customer service provided by both lender and broker. Also I have realized my mortgage broker is not acting in my best interests and I believe she lied to me on multiple occasions.

What are my choices here?

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  hashtagbargain on 02/07/2021 - 00:30

  Hang in there and switch after 24 months.

  • 

    HarveyS on 02/07/2021 - 01:25

    I am actually trying to make a cashout transaction but it is becoming very difficult to deal with this kind of service.

    • 

      hashtagbargain on 02/07/2021 - 01:47

      +3

      Wondering why you are still dealing through your mortgage broker. Once the mortgage is settled, they are kinda it if the picture. It is then between you and your lender. If you’re having difficulty with the loan establishment, contact the afca.

      • 

        Krankite on 02/07/2021 - 09:12

        I'm not sure this is the case, when I re-fixed my loan approx 4 years ago the bank needed formal approval to take over the loan from my broker.

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  Puglife on 02/07/2021 - 07:31

  Obviously you haven't seen the "break free" or you wouldn't be making this post….
  It's likely to be $5000+

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  Jules85 on 02/07/2021 - 07:43

  Stop signing up to fixed rate mortgages, it's going to cost a fortune if you keep breaking them.

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  TheMindsetTraveller on 02/07/2021 - 07:54

  +1

  Tell us how you think your broker is not working in your interests?

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  avoidfullprice on 02/07/2021 - 09:12

  Also I have realized my mortgage broker is not acting in my best intrests and I believe she lied to me on multiple occasions.

  What are the facts?

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  Edinburgh on 02/07/2021 - 09:26

  -1

  I am not an financial expert but my broker said if you break and switch lenders frequently, it may impact your lending reputation and credit rating. See what fellow ozbs have any fact about same.

  • 

    El-Rhi on 02/07/2021 - 16:32

    +1

    Not true. I’ve refinanced multiple times within the last 2 years and it has had zero impact on getting approved. Brokers will say this as they want to keep you on their books for their trailing commissions

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  netjock on 02/07/2021 - 10:21

  Although I am on better rate but I am pissed off with the customer service provided by both lender and broker.

  I hardly ever talk to them. I'd suggest stick with it.

  Also I have realized my mortgage broker is not acting in my best interests and I believe she lied to me on multiple occasions.

  Did you pay them? Or did the bank pay them? Not a surprise they feather their own nest is it. I had people on here argue you are paying them in a round about way and they have ethics (the same ones as financial planners I assume).

  You need to check your break fees.

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  pndl on 04/07/2021 - 14:21

  Have you gotten a break fee quote yet? The answer depends on the break fee, compared to rates and offers on the market.