When it comes time to purchase a property (be it a first, second or twenty fifth purchase) many people will seek out a mortgage broker to ensure they are getting a great, low rate on their home loan.
Which is great! And a very smart thing to do 😉
But what happens to that great, low rate once the initial transaction is complete? What happens to that rate in say, 6 months? Or a year? Or 10 years?!
Inevitably, that rate goes up.
We have always held the view that just because a client’s loan is successfully settled at a great rate, that doesn’t mean the work is over. For us, it’s just the beginning of a long-term working relationship, that will see our clients reap the benefits of our industry first annual reviews where, year after year, we continually negotiate with their chosen lender to ensure the lowest possible costs on their loan are maintained.
Short of making additional repayments, we believe it’s one of the most effective ways to ensure you are maximising efficiency when it comes to paying off your loan, and sooner.
As a way to help quantify the benefits of our annual reviews, we’ve put together a summary of the results achieved for our existing clients for the month of October. Take a look!
In October 2018, we conducted 20 interest rate reviews for existing customers. Of these 20 reviews, 16 were successful in achieving interest rate discounts.
An average additional rate reduction of 0.30% was achieved as a result of these reviews. This equals an approximate average monthly saving of $79, or an approximate average annual saving of $949.
The largest interest rate reduction achieved was 1.12%.
Of these 16 successful rate reviews, 12 were for owner occupied facilities where an average additional rate reduction of 0.35% was achieved. This equates to an average monthly saving of $94, or an average annual saving of approximately $1,333.
The largest owner-occupied rate reduction achieved was 1.12%.
The remaining 4 successfully reviewed rates were for investment facilities, where an average rate reduction of 0.18% was achieved. This equates to an average monthly saving of $33, or an average annual saving of approximately $399.
The largest investment rate reduction achieved was 0.18%.
*for consistency, a uniform loan term was used in the above calculations
If you suspect you might be paying too much on your home loan, or if you’re interested in taking advantage of our annual review loan management system, we’d love to hear from you!
You can reach us here: 1300 664 603
or here: [email protected]