Fixed interest rates are at historical lows so there has never been a better time to make sure you are getting the best deal on your home loan. With two-year fixed rates as low as 2.09% and some lenders also offering refinance rebates of up to $4000 payable on settlement^, it certainly pays to ask the question, could you switch and save?
It is very easy to see if you can save money on your loan. Simply email your most recent home loan statement and I will take care of the rest. If you are currently on a fixed rate loan I would also ask you to please contact your lender and ask “If I was to break my loan today, what would be the break cost?”. It really is as simple as that!
* Owner occupied P&I 2 years fixed LVR <80%, 2.09%
* Owner occupied P&I 3 years fixed LVR <80%, 2.14%
* Investment P&I 2 and 3 years fixed 2.29%
* Investment I/O 2 and 3 years fixed 2.44%^ application must be submitted before 31st May 2020 and the loan settled by 30th September 2020
I recently assisted a customer who wanted to know if it was worthwhile staying on his current fixed rate loan (which had 2 years to go) OR breaking the loan, paying the associated break costs (approx $5000) and refinancing to a better deal.
After doing the numbers I worked out it was indeed better for the customer to break his current fixed rate loan as he would save just over $21,000 over the remaining 2 years fixed term.