Are Home Owners Paying Too Much On Their Home Loans?
✅The Australian Competition and Consumer Commission (ACCC) has stated in it's home loan price inquiry that Australian's with older home loans are losing money by not checking for better interest rates.
✅Bank loyalty and laziness is costing many borrowers tens of thousands over the life of their loan.
✅Mortgage Broker Revesby has a lender panel of over 30 lenders.
✅Existing home loan customers tend to pay higher rates than new customers.
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The Loyalty Tax
✅Sticking with your bank may cost you 0.58% on average in higher interest rates compared to new customers.
✅The ACCC said the difference in interest rates paid by existing and new customers got worse the longer the loan was held.
- Less than 1 year; the average difference in interest paid was 0.29% in 2020.
- Anywhere from 3 to 5 years; the difference in interest paid was 0.58%
- Over 10 years; the difference in interest paid was 1.04%
Why are Australian's not refinancing?
✅It costs money to discharge a loan and it's a different process with each lender. We estimate that it costs around $1,000 to switch loans on average. However, many lenders have cash back offers which can cover the cost and sometimes put thousands in your pocket on top. Mortgage Broker Revesby will take care of the switch so you don't have to.
✅The lower interest rate is not enough to switch. If you can save 0.58% by switching, that can add up to tens of thousands of dollars over the life of the loan. Active home loan management through refinancing to lower interest rates can shave years off your home loan. And with Mortgage Broker Revesby it's a free service.
✅Many customers have been with their current banks since childhood. Even if you could only save $100 per week in interest repayments by switching, this nostalgia is costing you $5,000 per year.
✅Most people don't think of switching home loans until there is a divorce, investment, or moving house etc..
✅The ACCC acknowledged that borrowers are in a weaker negotiating position as they don't have access to price comparison tools. It's time consuming to approach each lender individually and it's tough to know where to start.
✅Some lenders can take over 15-25 days to discharge a mortgage, making the process too lengthy and burdensome for many borrowers.
✅Lenders have credit retention strategies to convince the borrower not to leave. The process is often confusing and effective in keeping the client at the bank. The ACCC has indicated that banks need a maximum limit to complete the discharge process.
Benefits of refinancing
✅Huge savings in interest rate repayments.
✅Borrowers can negotiate better product features like split loans & offset etc.
✅Take out equity for home renovations at better rates.
Are you thinking about switching your home loan?
✅Mortgage Broker Revesby will manage your mortgage for the life of the loan. We will review your home loan every 2 years to make sure it is competitive and still what you need.
✅We do not charge a fee and will guide you every step of the way.
✅With over 30 lenders on our panel, Mortage Broker Revesby should have a great option to refinance.
✅All refinancing costs and cash back offers will be explained to you in full before you go ahead.
No fee service.
Email us your scenario
Matthew Stack
matthew@mortgagebrokerrevesby.com.au
www.mortgagebrokerrevesby.com.au
0423 237 242
#mortgagebrokerrevesby #mortgagebrokersydney #homeloan #refinance
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