April 10, 2014
By simply refinancing to a lower rate, you could save thousands and cut years off your home loan.
On a typical $300,000 home loan with a loan term of 30 years, reducing your interest rate by 0.25% could put over $550 per year back in your pocket. Or if you keep your repayments the same, it will save almost 2 years off your loan term.
And with the Reserve Bank of Australia keeping rates on hold this month, borrowers are increasingly seeking rate cuts of their own by refinancing.
Data from the Australian Bureau of Statistics shows that the number of owner occupiers refinancing their home loans was up by 17 percent to $27 billion in the last six months of 2013.
Fuelling this refinancing trend are Australia’s banks and lenders who are offering cash backs and special rate deals to those looking to refinance.
According to comparison website Rate City, standard variable rates are now 0.54 percent lower than they were 12 months ago, while 3 year fixed rates have come down 0.33 per cent.
So now is a great time to consider refinancing.
To find out whether refinancing is right for you, call us today on 9432 6070 or click on the 'contact us' tab at the top of this page.