A mortgage broker has released data that reveals the significant savings that may be available to borrowers through refinancing their home loan.
At Aussie, homeowners are saving an average of 0.66% on their interest rate when they refinance. Based on Aussie’s average refinance loan size of $346,310, that means that customers are saving over $1,600 per year.
Aussie CEO, James Symond, explained: “Even though the RBA hasn’t moved rates for over two years, lenders have been making their own interest rate adjustments, with many increasing rates for existing customers while saving their best deals for new borrowers.
“In this market it certainly pays to keep an eye on your home loan rate and review it with your broker regularly. Despite the royal commission’s findings, our data proves Aussie brokers are saving customers a fortune through the ongoing management of their home loans by finding them a better deal.”
The data showed that Aussie customers refinancing in the Northern Territory saw their mortgage interest rate drop by an average of 1.29% or $243 per month, followed by the ACT at 0.85% ($182), WA at 0.82% ($160), Queensland at 0.78% ($144), SA at 0.64% ($105), Victoria at 0.63% ($130), Tasmania at 0.63% ($88), and NSW at 0.61% ($136).
“In general, there is a lot more focus on interest rates, the property market and tightened home lending by borrowers and the media. Our data shows that despite this, even in markets where capital growth has been challenged like NT and WA, savings may still be found by securing a lower interest rate, putting valuable dollars back into customers’ pockets instead of the banks’,” said Symond.
According to the data, owner-occupiers are saving more than investors on average, with a reduced interest rate of 0.81% compared to 0.62%.
“Complacency is the killer, so my top tip is to keep on top of your home loan and review it each year, just like a pink slip for your property. An annual home loan health check with your broker doesn’t cost you anything, and could save you thousands,” concluded the Aussie CEO.