Did you know that on average only 6 percent of mortgage holders had refinanced their home loan in the 12 months prior to June 2020.
Why is this an issue? Well interest rates have dropped significantly since then and chances are you are paying extraordinarily high interest rates as rate cuts aren’t automatically passed on to existing customers.
How far have the rates dropped?
On December 1, the Reserve Bank of Australia announced that Australia’s interest rates will remain at the historic low of just 0.1 per cent for the rest of 2020 and they’ve sworn to keep the cash rate unchanged for up to three years.
This means lenders are offering interest rates around the 2 percent mark, with at least one lender offering a three-year fixed home loan rate of1.89 percent. That’s the lowest commercial fixed interest rate the country has ever seen.
If you took out your home loan in 2018 interest rates were being offered from about 4.1 percent.
In 2019 the Reserve Bank cut interest rates five times.
That change in just 1-2 percent difference to the end of 2020 means thousands of dollars back in your pocket. But you need to act now.
How much can I save?
Let’s break it down for you. The following table shows averages only for principal and interest repayments:
If you’re ready to take back control of your mortgage, then let us help you find the best deal suited to your circumstances.