Is it time to refinance your home loan? You bet it is!
With the latest rounds of interest rate cuts by the Reserve Bank of Australia due to the Corona Virus outbreak, there has never been a better time to refinance, either by negotiating with your current lender for a better deal, or switching banks entirely!
Banks are buying business through refinance deals at the moment, in what has become the ultimate competition hotbed. Rebate deals designed to entice you to switch banks (some of these have been advertised with amounts upwards of $4000!) and interest rates which begin with a “2” are quickly becoming the new normal.
It is also important that you not only consider switching to a better deal, but you take advantage of the better rates and pay down the loan with extra payments. Even an additional $50 a fortnight will make a tremendous impact on the interest you will save.
If you aren’t sure why getting such a low interest is such a big deal, ask someone who had a mortgage back in 1981, when interest rates were at around the 18% mark – They will quickly tell you what that felt like!
Do yourself a favour. Take out your phone or laptop and log into your banking account. You will find information about your mortgage account in there including your interest rate. If you see that your rate is above 3.30% you are probably paying too much and it is time to start looking into options.
Here at Reach Financing, we have a range of options to suit many different situations. We will do a comparison for you, to ensure that you will pay the least amount over the life of the loan. Remember, banks may try to hook you with the “deal of the century”, but they might charge you an account management fee which can run into the hundreds of dollars each year, meaning a slightly higher rate with another bank but without these fees may mean more savings over the long term. We will check to make sure the best deal really is the best deal.
You can check out what Reach Financing can do for you by clicking here.