Banks Try To Retain Their Customers

Changing your mortgage from one lender to another is not as simple as it used to be, because mortgage lenders may have a few surprises up their sleeves.

Many refinance deals have been delayed deliberately because the current lender is trying their best to make it difficult for you to switch.

With such a large variety of interest rates being available there is a huge incentive to switch lenders. Never the less, lenders continue to disguise the total cost of a home loan often employing tactics to delay the process.

Many lenders blatantly use stalling tactics to endeavour to retain the mortgage on their books. This tactic can prevent settlement from going through and keep them in an expensive home loan for longer.

Phone your current lender once the discharge form has been submitted and request that they withdraw your mortgage immediately and take you out of any retention programs.

The best way to sort out this matter is to go to your nearest bank branch and personally hand in the papers.

It is also a good idea to call the bank for progress reports.

Customers need to make themselves aware of all the costs involved in the transaction.

Customers should be aware that once formal approval has been given on a loan it does not mean that they are committed to proceed.

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Published on December 12-th, 2009 in Home Loans
Damon Rasheed is the CEO of Rate Detective, an Australian financial service comparison sites specialising in Life Insurance, Income Protection Insurance and home loans. Damon holds a Master's Degree in Economics from the University of Melbourne and has been involved in many start-up internet businesses.

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