Interest rates on the way up and how to fight back
Over the last few weeks the Big 4 have raised their variable Interest rates for some of their home loans.
So, average standard variable rates, of the Big 4, for owner occupiers who pay principal and interest are lying around 5.25% and if you pay interest only this might be 0.2% higher.
What does this mean for you?
While you might have a discount off the standard variable rate with your lender, this rises in Interest rates will still apply as discounts are taken off the “standard variable”
Have you thought of using a Non Branched Bank?
Whilst they don’t offer you the convenience of bank branches, this saves them a substantial amount of money and they are passing on this savings to you. You need to ask yourself, when was the last time you needed to go in to a branch?
Some non-branched customers have owner occupy home loans are starting at 3.79%, 3.81% comparison rate*
If you investor there is money to be saved too. Investor home loans are starting at 4.14% with a 4.14% comparison rate*
On a $400,000 with in interest rate 0.5% lower then what you are currently paying, can save you saves you $2000 in interest in the first year which will not just cover your switching cost but also put some money back into your pocket.
There are also a lot of competitive fixed interest rates around, which would not just get you a better interest rate at the moment but would also give you certainty that your interest rate is locked in for the fixed period.
Talking to a lending specialist from Let’s finance can help you find out how your mortgage compares and how much you can save. An appointment with one of our specialists is obligation free and does not cost you anything. Leave us your details here and we will get back to you in no time.