Is now the time to switch and save?
With the Reserve Bank of Australia having reduced the official cash rate recently to a new record low of 0.25%, things continue to look positive for low rates to stick around for a while yet. However, it is likely that further bank rate cuts are imminent meaning our Brokers are remaining vigilant to ensure that our customers remain on the best rates available to them. Read more on the Reserve Bank of Australia’s comments on interest rates.
The current market would suggest that you cannot rule out the possibility of another cash rate cut in the near future, which means borrowers need to be prepared to negotiate a better home loan deal with their bank, or speak to an experienced mortgage broker who is well skilled in negotiating a better deal across a wide range of lenders on their behalf.
There has never been a better time for borrowers to reach out to a mortgage broker to find out what their options are, especially if they’ve been holding onto the same old home loan with their same old bank for more than two years.
With record low interest rates now on offer right now from many lenders, there are so many great deals around. If you are able to access a lower interest rate, you might want to consider keeping your repayments at the same repayment level which will help you pay off your home loan sooner. Or if your budget allows it, increase your repayment to further reduce your loan balance whilst the interest rates are low.
There has never been a better time to get ahead of what is the largest expense for most Australian’s.
Many savvy home-owners that have a mortgage are catching onto this now and are preparing for potential tougher times ahead and building a financial buffer for themselves. This is very smart thinking and can save you thousands of dollars over the next few years. If you’d like to know more about how much you could be saving on your home loan, use our handy refinancing home loan calculator.
Borrowers who have had their home loan for three years or more and have not renegotiated a better rate with their lender, are likely to be on an interest rate much higher than the current rates on offer. You could be paying up to 2% more than you need to, given that the lowest variable home loan interest rate today sits at around 2.64%. Use our simple home loan refinancing calculator to work out how much you could be saving.
It costs you nothing. I know you are probably thinking that nothing in life comes for free, but in this case, it’s true. We are remunerated by the lender that you end up choosing as the right fit for you. You really don’t have anything to lose by having an obligation free chat with one of our Home Loan Specialists about what you options might look like.
In short, we stay in close contact with our clients to keep them across what the home loan lending market is doing, so together, we can identify when is the right time for you to be saving money on your home loan. We understand that the world of home loan finance can be a little daunting, but this is what we do all day and we love it. Read more about why people are turning to trusted mortgage advisors to get the best deal on their home loan.
If you would like to know more, you can simply apply now or chat with one of our Home Loan Lending Specialists on 1300 665 906.
Nathan joined Fox Finance Group in 2018 to help drive the strategic growth of the business and also help build on the solid foundations that have held strong in the business since 2006.