If you saw $50 lying on the footpath would you pick it up?

In the home loan world the equivalent is being able to get a better deal and not taking advantage of it.  Say for example you initially took out a home loan over 30 years that had an initial discounted 2-year fixed rate, then reverts to the standard variable rate. At the end of the fixed rate period what rate are you paying – well one leading big 4 banks standard rate today is 4.87% (1).

Currently we have another lender offering a rate of 3.59% (2) – a difference of 1.28%.  An example of the savings that you could make are as follows:

Existing loan:

Refinance to:

Savings:

Of course, there may be some costs in refinancing, but many lenders offer a rebate to cover these.  Other things to consider:

• Are you eligible for the 3.59% offer?
• Will the rate difference remain the same over the life of the loan?
• Are you looking to sell and buy a new property in the future?

Spend some time with a professional mortgage specialist and we will work through these questions and others to check if your existing loan is suitable and is best for you.  They will also advise you on the best refinance options if a change is in your interests.

Now forget picking up that $50 note, that’s child’s play. Contact Us to arrange a complimentary home loan health check today.

Come talk to us and possibly pick up some serious money.

1. Rate quoted is CBA standard variable rate home loan – rate is 4.87%, comparison rate is 5.27%.
2. Rate quoted is Move Bank Straight Forward variable rate home loan – rate 3.59%, comparison rate 3.62%.
3. Rates are current as at 19 March 2019.
4. The above is general in nature and does not take into account your personal circumstances and position.