If you’ve had your home loan for a couple of years or more, and have been consistent with your repayments, there’s a good chance you’re paying too much interest.
What I’m seeing at the moment is lenders who are quick to pass on interest rate rises to their existing customers ‘ – what I call the loyalty tax’, whilst offering discounted rates to win new customers.
The reason for this is new lending has decreased. Less people are buying property, so the banks have to resort to stealing clients from other banks by making their terms more attractive for new business.
If you’re wondering whether its worth the effort to shop around and refinance, consider that on a million dollar mortgage, moving to a loan with a 1.5% lower rate will save you around $10k a year in interest repayments.
Also consider that a good mortgage broker makes switching easy. They present you with the best options from a number of lenders, then use the latest digital tech to collect your paperwork and keep the admin to a minimum.
If you think you might qualify for a better rate and want to learn how much you could save, please get in touch. that’s including if you’re self employed, or have complex property portfolios, I’ll connect you with a specialist from my team who can help.