To extend the loan term, a full assessment is required, providing all information and supporting documentation: income evidence, liabilities, signed applications, documents issued and returned along with a fee of around $250, which will take up to four weeks to finalise.
Changing lenders will attract a discharge fee of $340 plus registration and release-of-mortgage fees and any loan costs to the new lender, often between $250 and $900. In Jacqueline’s situation, the cost would outweigh the benefits.
With only a small amount owing on the mortgage she’s almost debt free and putting the $700 a month extra toward the home loan would clear the debt in less than five years. At a rate of 3.70%pa, the total interest paid would be about $3900.
Extending the loan to 20 years, at…
