You’d be surprised to know that there are more than 150 home loans with interest rates less than 5.2% p.a. on offer in Australia. Are you still paying the price for being loyal to your bank?
The interest rates in Australia have come down by over 2% p.a. since the year 2012. Despite that, less than 20% Australians have refinanced their home loan in the past 2 years.
Potentially, a $400,000 loan with a term of 25 years and an interest rate of 4.8% p.a. refinanced at a rate of 3.99% p.a. can lead to savings of up to $54,855 over the duration of the term! (See how much you can save by using the home loan switching calculator).
As a thumb rule, if you have been with your lender for over 3 years, it is time to take stock and check if your home loan is still right for you. The reason? Well, the market has changed, your financial position has changed (most likely) and there are better home loan rates available on the horizon that can save you thousands of dollars with a simple switch!
Has the market really changed?
The mortgage rates in Australia have been at a record low since the past few years. Further, owing to high competition in the market, lenders are ready to offer even better rates and features to lure customers or keep them from being lured away by competitors.
If you have been with the same lender for more than 2 years, it is a good idea to compare new home loan rates or contact mortgage brokers who can provide you several pre-negotiated deals to choose from without any cost to you. Read more to see how much you save by switching over from the Big 4 banks to the best home loan deals recommended by HashChing verified brokers.
Is your loan tailored for you?
With so much competition and so much choice in the market, you don’t have to adjust to a loan. In fact, it is highly possible to have a loan tailored to your requirements and also lock in a great interest rate.
Whether you need an offset account linked to your loan, have all your credit streams merged under a single loan, fix your rate for a some time or build in the ability to make additional prepayments or draw out extra repayments, contact our verified brokers to refinance with the best home loan deals possible.
Have you changed?
Given the fact it’s been more than 2-3 years since you changed your lender, chances are your financial conditions have changed – probably you are earning much more and would like to make some extra repayments, maybe there’s an additional member in your family and you would like to lower down your repayments, possibly you want to be debt free or collate all your debts into one – if your answer is yes to any of these, it is time to open your eyes and compare home loan pre negotiated deals online to align your home loan with your lifestyle and financial goals.
Is refinancing always a good idea?
Honestly, it is a good idea to review your loan every few years to see where you stand. Refinancing is a good option if:
- You are getting a better deal or a lower rate.
- You have recently renovated and want to cash in on the equity.
- You want to add some additional features to your loan.
- You have decided to consolidate all your debts.
- You are not happy with the service standards of your bank.
However, ask yourself the following questions before you take any decision:
- Does the lower interest rate cover your refinancing cost?
- Are there any other payments such as an exit or entry fee involved?
- What are the long term costs involved?
- Do the beneficial terms only apply to the first few years of repayment?
While refinancing is a great option to save bucks over the life of your loan, you must consider all aspects of a loan and your financial goals before you switch. Verified mortgage brokers at HashChing can help you in your quest by answering all your queries and getting you the best possible deals in the market.
Simplify your home loan with HashChing!
– Vidhu Bajaj