Smaller and second tier lenders are offering mortgage rates below 4%, Australian borrowers collectively are wasting more than $15 million a day by becoming too comfortable with the big 4 banks instead of switching to a cheaper home loan.
I have found the most common reason borrowers are sticking with a major bank is due to simply being unaware of what the smaller banks have on offer. The average home loan is 25-30 years which is the most expensive mistake an Australian home loan borrower can make.
Refinancing your home loan is only the mildest of inconveniences which could save you thousands – in fact on an average home loan of $500,000, it could be the easiest $2000 you will make this year.
Want to save thousands on your home loan?
- Get the best rate for you
Set up a meeting with your mortgage broker to compare your rate with the best available to you on the market. The broker will look beyond the four majors for the best value.
- Find out the switching costs
You might be charged a discharge fee from your current lender or an upfront fee by the lender you’re switching to. In most cases, the savings to be made by switching will outweigh any refinancing costs.
- Choose a loan with flexibility
Choosing a loan with flexible features is just as important as getting a lower interest rate. Features like an extra repayments facility and offset account can help you to pay down your home loan faster and save even more on interest charges.
