What interest rate are you being charged?
Here is why you should take note of what interest rate you are being charged. Using the example of a standard variable rate owner occupied loan of $500,000 with 25 years remaining. Repayment figures below are based on a principal and interest basis every month. The rates quoted are using two of Australia’s biggest lenders from rates advertised today.
The first bank will be charging you 4.45% pa or $2,770 a month and the second bank will be charging you 3.94% pa or $2,622 a month. That is a difference of $148 per month or $1,776 per year or $44,400 over the remaining 25 year period. Now your existing bank is never going to phone you and tell you this fact. They are relying on customer laziness to preserve their profits. That’s why it is important to have a mortgage broker health-check your mortgage rate, loan payment and the term remaining. Call me on 045 807 8004 to discuss