5 Apr 2019
Debt Management
Does your Home Loan Interest Rate start with a 3?
By Emily Matthews | Financial Advisor at Future Key Financial

If you have a home loan of $500,000 and have an interest rate of say 4.5% associated, you are liable to pay $22,500 per annum in interest repayments.

Some banks are offering mortgage loans with interest rates as low as 3.70% in the current environment! Terms and conditions apply*.

Applying an interest rate of 3.70% onto a mortgage of $500,000, that equates to $18,500 payable in interest per annum.

Saving you $4,000 per annum in interest repayments! That money saved could be redirected onto the principal value of your home loan, reducing the debt you owe and boosting your equity position.

Please note: The above calculation is an example only. There is no guarantee you will achieve a home loan rate of 3.70%.

* Not all borrowers are eligible to receive this interest rate. It is opportune to speak with a trusted mortgage broker who can source the best loan structure for you. We work with trusted, professional Mortgage Brokers who could help YOU access the best loan arrangement for your home and/or investment property/ies. Contact us on 07 3547 9100 for an introduction to a trusted mortgage broker. We are not affiliated and do not receive any kickbacks or referral payments for referring you to our trusted mortgage brokers.

What benefits can I access by engaging with a mortgage broker?

Mortgage brokers have access to a variety of banks and credit unions. They can compare and source the best loan rate and structure for you. Additionally, they can negotiate with banks and arrange for all paperwork on your behalf.

Our trusted mortgage brokers will explain the entire process to you to ensure you are comfortable and happy with the loan provider recommended.

Does it cost me to engage with a mortgage broker?

It doesn’t cost you a thing! Mortgage brokers are paid from the bank of choice once your loan has been approved.

Things to consider before refinancing:

  1. If your mortgage is a fixed rate structure and still within the fixed term period, you may be liable to pay break fees should you exit from this structure prior to the term maturity. This could result in a refinance not being worth while as the break costs associated could be more than the reduced interest achieved. It is best to discuss your current loan structure and future loan possibilities with a trusted Mortgage Broker.
  2. If your mortgage has a guarantor attached, you may be liable to pay Lenders Mortgage Insurance (LMI) if you break from your guarantor arrangement. A valuation will need to be completed on your home to assess your equity position and therefore your LMI payable (if any). The LMI will likely be added onto your home loan, which will result in interest payable on the LMI value.
  3. Not all loan packages are the same. Less banks are offering Offset facilities on Fixed Interest loans. Additionally, less banks are offering Interest Only Loans. It is therefore beneficial to know exactly what loan structure you want and thoroughly compare your current loan arrangement and the alternative options available. If you are unsure of how your loan structure should be, it is best to discuss this with your Financial Advisor and Trusted Mortgage Broker.

Should you have any questions in relation to your home loan structure/s or repayment affordability, please do not hesitate to contact us on 07 3547 9100. If you would like the details of our trusted mortgage brokers, please contact us for this information.

Leave a Reply

Your email address will not be published. Required fields are marked *

Daniel Mathers is an authorised representative (1238174) of Hunter Green Pty Ltd (AFSL 225962). Emily Matthews is an authorised representative (1261200) of Hunter Green Pty Ltd (AFSL 225962). Future Key Financial Pty Ltd ACN 608 953 840 is a Corporate Authorised Representative (1238170) of Hunter Green Pty Ltd (AFSL 225962). The information on this website contains general information and does not take into account your personal objectives, financial situation or needs. We recommend that you seek for specific financial advice if you require advice that takes into account your personal circumstances.