Complacency towards mortgages costing borrowers thousands.
The average Australian home owner is thousands of dollars out of pocket, paying an extra 1.75 per cent more interest on their home loan than the lowest available rate, new data shows.
With the average home loan in NSW at $437,100, the higher rate would cost an extra $5500 over a 25-year loan term that could be avoided. The analysis of 200,000 users also revealed 90 per cent of Australians do not know what their home loan rate is,
The majority of Australians are paying more than they have to for their mortgages, new research shows.
“If you look at the market before the latest RBA rate changes, the most competitively priced home loans on offer are at or below 4 per cent interest and the best big four bank rates are about 4.4 per cent,
The average Australian is paying 4.7 per cent, the research shows, with some lenders having rates varying dramatically between the highest and lowest rates offered.
Many Australians usually find “the stress and process of getting the loan in the first place enough to stop them wanting to refinance.
All mortgage holders should undertake a “health check” on their mortgage every 24 months, which may include looking at other mortgage products on offer and getting in touch with me.
“Banks are hungry for new business at present – which is evident by all the cash rebates and low rates on offer for new to bank clients. Now is a great time to take advantage of the competitive market.
My client recently refinanced a $390,000 mortgage into a new loan with an interest rate 0.64 per cent lower – an annual saving of about $2500.
Refinancing is actually a straightforward process, usually involving a conversation with a broker like me and some paperwork.
An hour spent chatting with me and compiling documents could save you thousands.
Unless your home loan is fixed, or you have a loan worth more than 80 per cent of your property’s value, it’s usually not an expensive prospect to refinance. A phone call to me about your intention to refinance will save you thousands on your home per annum.
The cost of refinancing usually costs up to $1000, but is increasingly covered by banks as a rebate.
The majority of mortgage holders – 39 per cent – have not switched lenders in more than a decade,
“People tend to overpay or remain with a mortgage due to complacency, lack of time, the belief that it is too difficult, and the misconception that it is a costly process.
“It’s alarming that borrowers aren’t switching home loans, particularly in a low interest-rate environment.
A saving of 0.1 per cent off the average mortgage with a variable home loan rate of 5.12 per cent would save a home owner $22 a month – or close to $8000 over 30 years.
Please call me to discuss how I can save you money on your home loan.