Here’s why the refinancing figures are on a record-breaking run.
The loyalty tax has left three-quarters of borrowers feeling "ripped off" and "mad," with the average Australian homeowner paying more than $37,000 in extra interest over the life of their home loan.In July, the number of homeowners refinancing jumped to an all-time high as interest rates fell to a new low. We'll go through the reasons why so many individuals are refinancing, as well as why you should think about doing the same.
More people are refinancing their mortgages than ever before, and the new ABS numbers released this week show that we’re not exaggerating.
In July, the total amount of refinanced house loans reached an all-time high of $17.2 billion, up 6% from the previous month.
It’s also more than double the amount that was refinanced in July of last year, exactly two years ago.
So, why are so many people refinancing their homes?
For openers, after six rate decreases in three years, the RBA cash rate has fallen to an all-time low of 0.1 percent.
As a result, there is tremendous competition among lenders, with many providing record-low home loan rates in order to attract as many people as possible.
In fact, RateCity claims that in just two months, the number of variable rates under 2% on its database has increased from 28 to 46.
Following rumors that lenders have started boosting rates on 3-5 year fixed-rate loans, borrowers are also deciding to lock in their interest rate, according to the ABS.
Under Katherine Keenan, ABS head of Finance and Wealth, “borrowers are looking for lower interest rates, particularly for fixed-rate loans, as well as cashback deals from a wide range of major and non-major lenders.”
The number of homeowners refinancing as a result of COVID-19 is likely to rise as well.
Refinancing your mortgage is a simple way to save money on your monthly mortgage payments, especially as many households and businesses around the country are struggling right now.
How we can assist you with refinancing the correct manner
Fixed-rate loans and rewards programs may appear to be quite enticing at first glance, but they may not always be the best option for you.
As a result, having someone on your corner like us is beneficial.
We can assist you in understanding the fine print, as well as any fees or restrictions that may apply to these financing alternatives.
We can also assist you in determining whether a fixed, variable, or split loan is the best option for you.
Negotiating with your lender is another area where we excel.
Your present lender isn’t going to give you the best deal on the market unless you ask for it. You’ll have to beg for it.
You should also make it plain that if they don’t lower your interest rate, you’re willing to look for a better one.
If they don’t want to play ball, this can be scary, time-consuming, and infuriating.
We can, however, undertake the legwork for you if you prefer.
To save thousands of dollars in interest repayments on your mortgage, contact us today if you haven’t refinanced in the last few years.
To learn more, contact Premium Finance Group Australia at (07) 4720 8888 or email us at firstname.lastname@example.org
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