Phone: 0408 671 524

Some estimates put the cost to customers of their ‘loyalty’ to their existing home loans with the big four banks at ‘more than $6 billion in savings each year’*.

Given that there are home loan lenders offering rates as low as 3.99% at present ‘Australians are wasting $17 million every day by sticking with the big banks and paying higher interest rates’*.

So instead of an ‘out of sight out of mind’ approach on your home loan (bit like your super! Or that health check you need!) here’s why you might want to consider refinancing.

 

  1. There are big savings to be made

    Type home loan interest rate into google. The deals you see are how much you could be paying – which probably represents a huge saving for you. And if you don’t know exactly what rate you are paying now, that probably puts you in the majority of people in Australia! It’s often our single biggest monthly expense and yet it can be a vague figure that we can’t keep track of that changes randomly each time we get a letter from our lender.

  1. The big four banks are relying on you to be lazy

    The billion dollar profits of the banks don’t come no-where! The banks like to offer deals to entice new customers but rarely repay your loyalty when you ‘set and forget’ your home loan. Just like your car or home insurance, a simple review can result in a better deal.

  2. The banning of exit fees in 2012 has made switching more affordable

    In 2012 the government set about getting rid of the barriers that the banks had in place to make it difficult for you to shop around for a better deal on your home loan. There are still some costs of refinancing (like mortgage discharge fees and mortgage registration with your new lender) but they are nothing in comparison to the break costs the banks used to charge.

  1. There are some fantastic home loan deals out there

    Competition in the market continues to be strong, in spite of some of the regulatory changes that came into place in 2015 that impacted on interest rates. Lenders such as ING Direct, ME Bank, BankSA and Suncorp  not only have some terrific deals, but they also have high customer satisfaction levels**. And despite having the highest advertised variable interest rates, the big four banks will also compete aggressively for new borrowers or those that are refinancing, with discounts based on individual circumstances.

  1. It’s not as hard as you think

    It is really up to your Mortgage Broker to do the heavy lifting on assessing whether a refinance results in a better, or more suitable home loan for you. It is up to them to look at your current situation and then assess the hundreds of available loans in the market to see what options might represent a better option for you.

 

So whether your home loan is 1, 2 or 10 years old, it’s probably worth putting in a call or shooting off a quick email to see if you can get hold of some of that $6 billion in savings. I’m sure there are plenty of things you can think of to spend your money on than paying the banks interest you don’t need to on your home loan!

 

Douglas Piening is a Mortgage and Finance Broker with Piening Financial Solutions and is passionate about providing advice you can trust. Whether it’s buying a home, refinancing a loan, investing, building or renovating, Doug brings a wealth of knowledge and expertise to assist with your lending needs.

You can contact Doug at douglas@pieningfs.com.au or (m) 0408 671 524.

Want to hear what clients have said about working with Doug? Take a look at these reviews from LinkedIn and Facebook.

This information is of a general nature only and does not constitute professional advice. You should always seek professional advice in relation to your particular circumstances.

 


Source:

*‘Loyalty to the big four banks costs home loan customers billions’ October 29, 2015 news.com.au

**‘Home loan customers urged to switch, as banks stand to reap an extra $9.9 billion’ November 24, 2015 Sydney Morning Herald.

 

This information is of a general nature only and does not constitute professional advice. You should always seek professional advice in relation to your particular circumstances.

 

 

Leave a Reply

Your email address will not be published. Required fields are marked *