In the current home loan market, there is strong competition from the lenders to gain your owner occupied home loan business. So interest rates are now much lower than what you were offered when you took out your loan. Unfortunately most lenders will not match those rates that are offered to new customers, so it is worth your while to shop around for a better rate.
The majority of households currently pay an interest rate around the 4.7% mark. That is nearly 1% higher than the current rates offered by some of the smaller lenders.
If your current home loan balance is $450,000 and you are paying an interest rate of 4.7%, your monthly principle and interest repayments would be approximately $2330 per month.
If you were to reduce the interest rate to 3.74%, those monthly repayments would reduce to $2080 per month. So just by refinancing to another lender, you could be saving $250 per month*.
If you chose to move to a cheaper product but continue to pay the same repayment figure you were previously, that additional $250 per month in repayments means you could own your home 5.5 years faster!
If you'd like to find out if you qualify, give me a call on 0414670151 or email me at firstname.lastname@example.org
*Depending on the lender you are currently with, it may cost up to $700 to refinance, so after month three on the new loan, you are ahead on your repayments.