Picture your Future. Save for it by earning 1.5% on a 1-year Term Deposit Account! Learn more.

The potential benefits of refinancing your home loan

When buying a home, many people spend a lot of time and effort shopping around for the best deal they can get on a mortgage. Yet, once the deal is signed, many never bother to check if their existing home loan is still the best option for them. If we are happy to change our internet service providers or favourite restaurants because we find a better deal or higher standards of service, then why shouldn’t we do the same with our home loan provider?

There are several potential advantages that can come from refinancing your home loan. Switching your loan to a different deal with your existing provider or moving to a new provider could save you money if lower interest rates are on offer. With home loan payments typically being the largest financial obligation for many, securing a lower interest rate to reduce these payments can make a big difference to your quality of life.

Also, keep in mind that if you bought your home some years ago, the difference between the amount you owe on your mortgage and the value of the property will be a lot lower than it was when you first took out the loan. This means that you might be in a lower loan-to-value (LTV) band, which is viewed as less risky and could make you eligible for better loan terms.

Even if you’re nearer the start of your home loan, shopping around could result in savings. This is especially true if you have been on a fixed rate for the initial period of your loan, which is now coming to an end. This is a good opportunity to see if the rates offered by your existing provider are still the most favourable available. If you have not been completely satisfied with the service provided this is also a good time to see if there are any better alternatives.

Of course, switching home loan provider does take some effort. You will need your notary to conduct an update of your searches, an updated valuation from an architect approved by your bank and an Energy Performance Certificate (EPC) to get your new mortgage. This process can be seen as time consuming and burdensome, resulting in many people being put off and sticking with their current deal. It’s therefore important to understand how the different banks operate and whether, like MeDirect, they make the effort to speed up this process by, for example, accepting documents digitally.

Despite the effort that may be required, keep in mind that refinancing your home loan is about ensuring your mortgage continues to meet your financial needs at the best possible terms. It’s a strategic move that requires careful consideration but can lead to substantial financial relief and stability.

MeDirect Bank (Malta) plc, company registration number C34125, is regulated by the Malta Financial Services Authority as a Credit Institution under the Banking Act 1994. Applications are subject to the Bank’s lending criteria. Terms and conditions apply and are available on request.

Join MeDirect today to access the tools you need to put your money to work on your own terms.

Latest news articles

MeDirect continues to support the performing arts in Malta through a new agreement with ŻfinMalta, the national dance company. The agreement will help ŻfinMalta deliver an exciting progamme during the 2024-2025 season.
All News

MeDirect partners ŻfinMalta for a new season

MeDirect continues to support the performing arts in Malta through a new agreement with ŻfinMalta, the national dance company. The agreement will help ŻfinMalta deliver an exciting progamme during the 2024-2025 season.

Uneven earnings call for granularity
All News

BlackRock Commentary: Uneven earnings call for granularity

Strong corporate earnings have driven U.S. and Japanese equity overweights, with fundamentals taking precedence over valuations, while European opportunities remain selective due to weaker earnings growth, highlighting AI-driven U.S. potential and targeted gains in sectors like European financials.

Experience better Banking

The sooner you start managing your money, your way, using the best-in-class tools, the sooner you’ll see results. 


Sign up and open your account for free, within minutes.

MeDirect_Multi-Devices-cards

You are leaving medirect.com.mt

Please be aware that the external site policies, or those of another MeDirect website, may differ from this website’s terms and conditions and privacy policy. The next website will open in a new browser window or tab.

 

Note: MeDirect is not responsible for any content on third party sites, nor does a link suggest endorsement of those sites and/or their content.

Login

We strive to ensure a streamlined account opening process, via a structured and clear set of requirements and personalised assistance during the initial communication stages. If you are interested in opening a corporate account with MeDirect, please complete an Account Opening Information Questionnaire and send it to corporate@medirect.com.mt.

For a comprehensive list of documentation required to open a corporate account please contact us by email at corporate@medirect.com.mt or by phone on (+356) 2557 4444.