March 21, 2023 by Peter Machell
What would you say to $2,000?
At Mortgage Choice Macedon Ranges, we review a client's loan every 12 months. Whenever we see that they should be getting a better rate we help them to get it.
We’ve been doing annual reviews for eight years. They’re time-consuming, which is why very few brokers do them, but they’re worth it to our clients. We’re delighted when we can deliver good news.
In recent weeks, we saved clients a combined $13,457 a year in interest.
In one instance, we negotiated a rate discount of 0.32 percentage points. This secured our client a saving of $1,577 a year in interest.
Another client’s rate was trimmed by 0.4 percentage points, resulting in a saving of $2,088 a year in interest.
One couple were able to save $6,504 a year in interest after we secured a rate reduction of 1.68 percentage points.
If you have a $400,000 mortgage and haven’t recently reviewed it, your rate could be at least half a percentage point higher than it should be.
If you were repaying at the lower rate, you could save about $2,000 a year.
(And, of course, if your mortgage is larger than $400,000 - and many mortgages are - you could save even more.)
The big increases in Macedon Ranges property prices over the past few years have put many people in a stronger negotiating position with lenders.
People who took out a loan two or three years ago - especially first-home buyers - may have borrowed with little equity in their property.
But now their home could be worth hundreds of thousands of dollars more.
Because the size of their loan is now smaller when compared with the value of their home, lenders become more willing to discuss a better rate.
Could you be doing better?
When you’re ready, call us for a free review of your home loan on 5427 4262.
