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What is churning?

April 26, 2017churning

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What is churning?

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We do not recommend changing lenders on a regular basis. Some mortgage brokers try to refinance your home loan every year. This practice is also known as churning. This not only can be very costly to the borrower but is also unethical and we do not recommend this type of practice. Don’t be fooled into changing loans unless you have a genuine need to switch lenders. To report a mortgage broker for any unethical practice contact the Mortgage Industry Association of Australia on (02) 9967 5142. What if you’ve already been approvedfor a home loan If you have already had a home loan approved it is our policy not to resubmit another application to the same lender as we feel this is not in the best interest of the client. If you already have a great relationship with your bank manager why change it? You can’t put a price on good service.