Refinancing when rates are increasing.
With the RBA recently increasing the Cash Rate Target, and rates increasing across most lenders, now could be a good time to reach out and see if the loan you have is the most suitable available. A small change now might save you in the long term and provide immediate relief.
HOW IT MIGHT WORK?
- We’ll examine your current situation and possibly get a new valuation on your home as this could affect your loan pricing.
- We may talk to your current lender first, and ask for a rate review, especially if there are better offers elsewhere
- We’ll explain any costs, as refinancing may involve fees like: break fees for exiting a fixed-term loan early, settlement or application fees.
- And if a better solution exists, we’ll let you know.
BIG SAVINGS HIDING BEHIND A SMALL RATE CHANGE
Often people only see just the upfront monthly saving of refinancing —and then they shrug it off like it’s not worth the hassle. What’s flying under the radar is the long-game win: the interest you could save over the life of your loan.
Here is an example of the savings you might expect when you reduce a home loan from 6.5% to 6% over 25 years.*
| Loan Size | Interest Saved |
|---|---|
| $500,000 | $45,000 |
| $750,000 | $68,000 |
| $1,000,000 | $90,000 |
While all of this may seem great, it’s always important to consider any costs involved and ensuring any new loan is setup correctly for your situation, and that it’s actually worthwhile – and that’s exactly what we are here for. We’re here to help explore your options.
* Savings are an estimate only and could change as a result of variable interest rate changes, repayment type, repayment frequency and loan balance over the term of the loan. https://moneysmart.gov.au/home-loans/mortgage-switching-calculator