Homeowners in Australia refinanced a whopping $15 billion worth of mortgages in Month of May 2020.To put that into context, before COVID-19 attacked, that monthly figure floated around the $10 billion to $12 billion mark. We have been flat chat over the past few months, aiding homeowners refinance their home loans and save thousands of dollars in rate of interest repayments.
Homeowners are taking benefit of reduced interest rates and viable refinancing offers. With numerous lenders to choose from, you may choose to get help from a home mortgage broker.A Good Broker Works with You to understand your needs and goals,work out what you can afford to borrow,find options to suit your situation,explain how each loan works and what it costs (rate of Interest and cost).
It’s beneficial to consult with a refinance mortgage broker and lending consultant in case you have any doubts about costs.
Why to choose a Home Loan refinancing option?
For the most part, the economic crush brought on by COVID-19 has made people stop and take sell of where they can make savings in their budget.So, the best way to do that is by refinancing only, as Australian home loan interest rates have never been lower.
On top of the Reserve Bank of Australia (RBA) has dropping the cash rate to a track record low, banks are currently competing hard for your business by extending never seen before interest rates.
How Much Can You Save By Refinancing?
Well, it’s differed on your individual conditions and a number of other factors, including how much loan and old your loan is.
Looking at the finance market as of March 2020, variable interest rates for a $600,000 home loan Interest range from 2.78% to 3.09% on owner-occupied loans, and 3.19% to 3.39% on investment properties.Let’s assume you have a $600,000 house on a 30-year loan period. If the interest you’re currently paying is 3.5%, you’re spending around $2,695 per month.Now if that rate were to come down up to 3.25%, you would be saving $80 a month or about $1,000 per year.
