Australian banks have been quietly bumping up interest rates in recent months, tightening the already-strained budgets of many mortgage holders. Alternative home loan options are out there, but many aren’t taking the extra step to switch lenders. Enter Australia's biggest home loan sale event -- now underway for 40 hours from 6am Monday May 8. Reduced rates, waived fees, exclusive deals. Here's how to start saving.
For 40 hours only from 6am AEST Monday May 8, some of Australia’s most competitive lenders will be cutting home loan interest rates, slashing fees and putting cashback offers on the table. You can enter your current home loan’s details and find out how much you could could save by switching in less than 60 seconds. Just some of the deals include:
• Reduce Home Loans offering the low rate of 3.39% (comparison rate 3.39%), for its Rate Buster Essentials 100% Offset Variable product. That’s a reduction of 10 basis points.
• ING Direct is giving borrowers $1500 cashback if you switch to one of its three products on sale. The best rate is the Orange Advantage Home Loan (Principal and Interest) at 3.79% (CR 4.01%).
Comparison website RateCity has crunched the numbers, and says it’s possible for average Australian home owners to save up to $39,000 on their mortgage over the course of 15 years, simply by switching lenders.
When you take an average-sized owner-occupied Australian mortgage ($353,700, according to the ABS) on the average discounted variable rate offered by one of the Big 4 Banks, and compare it to the lowest variable rate on the market, the resulting savings in interest charges well outweigh any discharge and application fees typically involved when refinancing.
Doubt you’d qualify for a lower interest rate? You may be in a better financial position than you think, and not even realise it.
Remember how house prices have been rising? If you’ve had your mortgage for even just a few years, the value of your property has likely increased significantly, depending on your area. This extra equity in your home can help make your mortgage less risky to lenders, which can in turn net you a much lower interest rate if you take the plunge and refinance.
To help Aussie home owners take this plunge, RateCity is taking the unprecedented step of hosting its own Switch & Save Sale, calling it Australia’s biggest home loan sale.
For 40 hours only from 6am AEST Monday May 8, some of Australia’s most competitive lenders will be cutting home loan interest rates, slashing fees and putting cashback offers on the table -- including the aforementioned lowest variable rate on the market.
You can enter your current home loan’s details and find out how much you could could save by switching in less than 60 seconds. With 30 days to decide and no obligation, Aussie home owners have nothing to lose, and up to $39,000 to gain.
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