If the fees are high it may not be worth switching or may be better to wait and switch later. Ask yourself: 'Is the cost of switching worth the potential interest rate saving? Use Keystone's 4 steps to answer this question.

Step 1: Shop around

Talk to your current lender and tell them you are planning to switch to a cheaper loan offered by another lender. They may suggest an alternative loan for you at a cheaper rate or offer to reduce the interest rate in order to keep your business. If you have a variable rate loan, you can also ask them to fix some or all of the rate. This could save you significant switching costs. Include any loan they offer in your list of loans.

Your Keystone Financial consultant can approach your lender on your behalf to negotiate a better deal and then compare the new structure with competitive loans on the market that suit your needs so you can see if your lender is doing enough to keep your business.

Step 2: Work out the costs of switching

Work out what fees you will be charged if you change loans:

• First, look at the exit fees on your current loan $……………..
• Second, look at the start up fees on the potential loans on your list $………….

Add these two amounts together to see what it will cost you to switch.

Step 3: Compare interest rates, fees and features

Look again at your list of potential loans. Review all options available, that is, the:

• interest rate
• fees
• features.

See just what is on offer that suits you better than your current loan.