How you can create a Christmas bonus yourself with your home loan
It’s only two weeks away from Christmas, which means peak gift-shopping season is upon us, but instead of just watching money roll out of your wallet during the holiday season, could- are you also organizing a festive bonus?
For many Australian homeowners, this isn’t just wishful thinking, it’s a real possibility if they are able and willing to refinance their home loan.
It might not sound as exciting as opening a gift under the Christmas tree, but it could put hundreds of dollars back in your pocket every month and save you thousands over the life of your loan.
That’s because mortgage interest rates have fallen since June 2019, and even last month with the last Reserve Bank cut. So if you haven’t changed your mortgage recently, you’re probably paying more than you need to.
Need to convince? Think about the numbers.
How much could you save by refinancing?
According to the ACCC, nearly 80% of the Australian home loan market is held by ANZ, Commonwealth Bank, NAB and Westpac.
The problem with the big banks is that they don’t always offer the highest rates. In fact, the average Big Four variable rate for homeowners is currently 3.56% – well above the average variable rate in our database.
|Interest rate||Monthly repayment ^^|
|Average of the four major variable rates||3.56%||$ 2,015|
|Mozo average variable rate||3.31%||$ 1,962|
|Lowest variable rate in our database ^||1.99% (comparison rate of 2.05% *)||$ 1,693|
It is not limited to customers of the big banks either. The large spread between the lowest floating rate and the average rate in our database means that there will likely be plenty of opportunities for borrowers to switch and save, especially those who haven’t refinanced back. in recent years.
And a difference in rates can translate into substantial savings.
Mozo’s mortgage repayment calculator shows that a borrower with a loan of $ 400,000 paid off over 25 years with P&I repayments could save $ 269 / month by going from the average rate to the lowest rate, which would be 80 $ 549 in interest saved over the life of the loan.
RELATED: 19 lenders offer refinancers up to $ 3,000 in cash back to switch home loans
Ready to compare rates to see if you could qualify for refinancing? Check out the great offers in the table below or head to the Mozo Home Loan Comparison Center for an even wider range of offers.
^ Currently available with the Reduce Home Loans Super Saver Variable Loan for homeowner borrowers with an LVR of less than 80%.
^^ Monthly repayment calculations based on a homeowner borrower repaying principal and interest on a $ 400,000 loan over 25 years.
^ See information on the Mozo Experts Choice Home Loan Awards
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