Have you taken advantage of Australia’s record low interest rates? On November 3rd, 2020 the Reserve Bank of Australia made the unprecedented move to reduce the official cash rate to just 0.10%. Never before in the history of Australia has the cash rate been that low. And some lenders have already started to pass on these savings in the form of reduced interest rates. If you are planning to switch home loan then read this post.
Just a few years ago, a home loan interest rate of 4.25% was considered a pretty good deal – fast forward to today and lenders are offering interest rates that start with a 1! Despite this, data reveals that 83% of homeowners continue to pay too much on their mortgage.
Imagine for a moment that you have an existing 30-year mortgage with a balance of $400,000 and an interest rate of 4.25%. Switching to a comparable home loan with a 1.99% interest rate would save you $491 each and every month. That works out to be $5,892 a year saved, with a potential saving of $176,861 over the life of the loan!
Refinance to access equity
Refinancing or switching home loan can also be an excellent way to access the equity in your home, allowing for some much-needed renovations…perhaps that home office you’ve been dreaming of? Not only would this make working from home easier, but a recent report published by the Real Estate Buyers Agents Association showed that a home office is now the third most important feature on the average buyer wish-list. So not only would refinancing afford you some short-term improvements, but it could also add additional value back into your home.
Switch and save on your home loan today!
Whether you refinance with a new lender or your current lender, Coronis Mortgage and Finance can get you there in 7-simple steps.
Alternatively, to book an obligation free consultation with your local mortgage broker today, fill out the form below!