While the thought of refinancing is sure to conjure up images of paperwork, bank forms and meetings, it’s important to realise that adopting a ‘set and forget’ mindset is likely to cost you thousands.
Recent data from the Reserve Bank shows the gap between the variable interest rates being offered on new loans compared to outstanding loans – often called a ‘loyalty tax’ – is approximately 0.5%.
Although a difference of 0.5% may not appear significant, over the life of a loan it can easily add up to tens of thousands in extra interest.
This ‘loyalty tax’ will cost Australians $8.9 billion this year alone!
You see historically, Australian banks haven’t rewarded borrowers for their loyalty – in fact, long-term customers often watch in disbelief as the bank they’ve been loyal to for years offers new customers much lower rates and other deals like cashback offers.
The difference between old and new home loan interest rates also tends to widen as the loan ages – so if you haven’t reviewed your mortgage recently, you’re almost certainly paying thousands in unnecessary interest!
Mortgages are widely recognised as the biggest monthly expense for households in Australia. With 12 interest rate rises since May 2022, and more potentially on the horizon, it’s more important than ever that lenders are giving borrowers a fair go.
As finance brokers we’re always battling banks to ensure our existing customers aren’t charged more than new customers.
If you are one of the many borrowers coming off of a cheap fixed rate, or if you just haven’t reviewed your home loan in the last two years, now is the perfect time to take advantage of lower rates and cash back opportunities before they disappear!
>> Simply request your FREE Finance Review, email firstname.lastname@example.org, or call 08 8451 1500 with the details of your current home, investment and other loans.
We’ll assess your situation and tell you whether you can save a significant amount of money by repricing, refinancing and/or rejigging your loans.
You have nothing to lose and everything to gain – so do yourself a favour, and let us help you get a better deal on your loans!
Sam, Matt & Team
PS. Right now you can still get up to $5,000 cash back by refinancing to a new lender!
PPS. Don’t wait! Get on the front foot now – click here or call 08 8451 1500 to schedule in your complimentary finance review.