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Mortgage featured stories

Does 1% p.a. make a difference?

Home Finance, Mortgage Broking, Property, Tips
Share
As a general statement Australians tend to be lethargic in reviewing their Home Loan once it has settled.  It generally takes another ‘trigger’ event, such as changing homes or renovating before we consider if there is a better loan option available. Does this mean that many Australians are paying more interest on their home loans than they need to?  I would say in many cases this is definitely the case. So lets consider a hypothetical couple called Bill & Beth.
Bill and Beth bought their home 5 years ago on a 30 year mortgage and have only been making the minimum repayments.  Their loan is now down to $250,000 and they have 25 years of their loan term left.  Bill and Beth are paying interest at a rate of 5.10% p.a. meaning that they are making monthly repayments of $1,476. So what if Bill and Beth could reduce their loan interest rate by 1.00% p.a.? As per the table below if they were able to locate a lender with a reduced interest rate of 4.10% they would immediately reduce their minimum monthly loan repayments by $143.  This reduction would actually save Bill and Beth approximately $42,700 over the remaining term of their loan!  
Min Repayment Interest paid over life of loan
Current Loan Structure
$250,000 @5.10% p.a. 25 years $1,476 p/mth $192,823
Proposed Loan Structure
$250,000 @ 4.10% p.a 25 years $1,333 p/mth $150,030
Savings $   143 p/mth $  42,793
But what if Bill and Beth were able to reduce their loan interest rate by 1.00% p.a. and still maintain their current monthly loan repayments of $1,476? As per the table below this would make a significant financial benefit to Bill & Beth.  They would reduce their loan term by approximately 3.8 years and save approximately $68,800 in interest versus their current loan structure.  
Min  Repayment Actual  Repayment Interest paid over life of loan
Current Loan Structure
$250,000 @5.10% p.a. 25 years $1,476 $1,476 $192,823
Proposed Loan Structure – with additional repayments
$250,000 @ 4.10% p.a 25 years $1,333 $1,476 $124,002
Interest Savings $68,821
Obviously each borrowers circumstances are different, and the above example is general in nature.  However the moral of the story is that there are potentially many Australians who could be saving money on their mortgage. If you would like advice on your specific situation I would suggest that you contact your local Mortgage Broker and request a home loan health check.  

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Is a tree or sea change on your horizon?

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Is a tree or sea change on your horizon? Fresh air, no bumper-to-bumper traffic and more affordable home prices. There’s plenty of appeal in regional living, including a chance to potentially reduce your home loan.

Is a tree or sea change on your horizon?

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Is a tree or sea change on your horizon? Fresh air, no bumper-to-bumper traffic and more affordable home prices. There’s plenty of appeal in regional living, including a chance to potentially reduce your home loan.

Is a tree or sea change on your horizon?

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Is a tree or sea change on your horizon? Fresh air, no bumper-to-bumper traffic and more affordable home prices. There’s plenty of appeal in regional living, including a chance to potentially reduce your home loan.

Why three-in-four Aussies turn to a broker for home loan help

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Why three-in-four Aussies turn to a broker for home loan help You might have seen a headline or two about a particular big bank being at war with brokers. Nothing could be further from the truth. Our mission is – and always will be – putting you first. That’s why three in every four borrowers now come to us for help.

Why three-in-four Aussies turn to a broker for home loan help

News
Why three-in-four Aussies turn to a broker for home loan help You might have seen a headline or two about a particular big bank being at war with brokers. Nothing could be further from the truth. Our mission is – and always will be – putting you first. That’s why three in every four borrowers now come to us for help.

Why three-in-four Aussies turn to a broker for home loan help

News
Why three-in-four Aussies turn to a broker for home loan help You might have seen a headline or two about a particular big bank being at war with brokers. Nothing could be further from the truth. Our mission is – and always will be – putting you first. That’s why three in every four borrowers now come to us for help.

Mortgage featured stories

Does 1% p.a. make a difference?

Home Finance, Mortgage Broking, Property, Tips
Share
As a general statement Australians tend to be lethargic in reviewing their Home Loan once it has settled.  It generally takes another ‘trigger’ event, such as changing homes or renovating before we consider if there is a better loan option available. Does this mean that many Australians are paying more interest on their home loans than they need to?  I would say in many cases this is definitely the case. So lets consider a hypothetical couple called Bill & Beth. Bill and Beth bought their home 5 years ago on a 30 year mortgage and have only been making the minimum repayments.  Their loan is now down to $250,000 and they have 25 years of their loan term left.  Bill and Beth are paying interest at a rate of 5.10% p.a. meaning that they are making monthly repayments of $1,476. So what if Bill and Beth could reduce their loan interest rate by 1.00% p.a.? As per the table below if they were able to locate a lender with a reduced interest rate of 4.10% they would immediately reduce their minimum monthly loan repayments by $143.  This reduction would actually save Bill and Beth approximately $42,700 over the remaining term of their loan!  
Min Repayment Interest paid over life of loan
Current Loan Structure
$250,000 @5.10% p.a. 25 years $1,476 p/mth $192,823
Proposed Loan Structure
$250,000 @ 4.10% p.a 25 years $1,333 p/mth $150,030
Savings $   143 p/mth $  42,793
But what if Bill and Beth were able to reduce their loan interest rate by 1.00% p.a. and still maintain their current monthly loan repayments of $1,476? As per the table below this would make a significant financial benefit to Bill & Beth.  They would reduce their loan term by approximately 3.8 years and save approximately $68,800 in interest versus their current loan structure.  
Min  Repayment Actual  Repayment Interest paid over life of loan
Current Loan Structure
$250,000 @5.10% p.a. 25 years $1,476 $1,476 $192,823
Proposed Loan Structure – with additional repayments
$250,000 @ 4.10% p.a 25 years $1,333 $1,476 $124,002
Interest Savings $68,821
Obviously each borrowers circumstances are different, and the above example is general in nature.  However the moral of the story is that there are potentially many Australians who could be saving money on their mortgage. If you would like advice on your specific situation I would suggest that you contact your local Mortgage Broker and request a home loan health check.  

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Is a tree or sea change on your horizon?

News
Is a tree or sea change on your horizon? Fresh air, no bumper-to-bumper traffic and more affordable home prices. There’s plenty of appeal in regional living, including a chance to potentially reduce your home loan.

Is a tree or sea change on your horizon?

News
Is a tree or sea change on your horizon? Fresh air, no bumper-to-bumper traffic and more affordable home prices. There’s plenty of appeal in regional living, including a chance to potentially reduce your home loan.

Is a tree or sea change on your horizon?

News
Is a tree or sea change on your horizon? Fresh air, no bumper-to-bumper traffic and more affordable home prices. There’s plenty of appeal in regional living, including a chance to potentially reduce your home loan.

Why three-in-four Aussies turn to a broker for home loan help

News
Why three-in-four Aussies turn to a broker for home loan help You might have seen a headline or two about a particular big bank being at war with brokers. Nothing could be further from the truth. Our mission is – and always will be – putting you first. That’s why three in every four borrowers now come to us for help.

Why three-in-four Aussies turn to a broker for home loan help

News
Why three-in-four Aussies turn to a broker for home loan help You might have seen a headline or two about a particular big bank being at war with brokers. Nothing could be further from the truth. Our mission is – and always will be – putting you first. That’s why three in every four borrowers now come to us for help.

Why three-in-four Aussies turn to a broker for home loan help

News
Why three-in-four Aussies turn to a broker for home loan help You might have seen a headline or two about a particular big bank being at war with brokers. Nothing could be further from the truth. Our mission is – and always will be – putting you first. That’s why three in every four borrowers now come to us for help.

Mortgage featured stories

Does 1% p.a. make a difference?

Home Finance, Mortgage Broking, Property, Tips
Share
As a general statement Australians tend to be lethargic in reviewing their Home Loan once it has settled.  It generally takes another ‘trigger’ event, such as changing homes or renovating before we consider if there is a better loan option available. Does this mean that many Australians are paying more interest on their home loans than they need to?  I would say in many cases this is definitely the case. So lets consider a hypothetical couple called Bill & Beth. Bill and Beth bought their home 5 years ago on a 30 year mortgage and have only been making the minimum repayments.  Their loan is now down to $250,000 and they have 25 years of their loan term left.  Bill and Beth are paying interest at a rate of 5.10% p.a. meaning that they are making monthly repayments of $1,476. So what if Bill and Beth could reduce their loan interest rate by 1.00% p.a.? As per the table below if they were able to locate a lender with a reduced interest rate of 4.10% they would immediately reduce their minimum monthly loan repayments by $143.  This reduction would actually save Bill and Beth approximately $42,700 over the remaining term of their loan!  
Min Repayment Interest paid over life of loan
Current Loan Structure
$250,000 @5.10% p.a. 25 years $1,476 p/mth $192,823
Proposed Loan Structure
$250,000 @ 4.10% p.a 25 years $1,333 p/mth $150,030
Savings $   143 p/mth $  42,793
But what if Bill and Beth were able to reduce their loan interest rate by 1.00% p.a. and still maintain their current monthly loan repayments of $1,476? As per the table below this would make a significant financial benefit to Bill & Beth.  They would reduce their loan term by approximately 3.8 years and save approximately $68,800 in interest versus their current loan structure.  
Min  Repayment Actual  Repayment Interest paid over life of loan
Current Loan Structure
$250,000 @5.10% p.a. 25 years $1,476 $1,476 $192,823
Proposed Loan Structure – with additional repayments
$250,000 @ 4.10% p.a 25 years $1,333 $1,476 $124,002
Interest Savings $68,821
Obviously each borrowers circumstances are different, and the above example is general in nature.  However the moral of the story is that there are potentially many Australians who could be saving money on their mortgage. If you would like advice on your specific situation I would suggest that you contact your local Mortgage Broker and request a home loan health check.  

More Stories

Is a tree or sea change on your horizon?

News
Is a tree or sea change on your horizon? Fresh air, no bumper-to-bumper traffic and more affordable home prices. There’s plenty of appeal in regional living, including a chance to potentially reduce your home loan.

Is a tree or sea change on your horizon?

News
Is a tree or sea change on your horizon? Fresh air, no bumper-to-bumper traffic and more affordable home prices. There’s plenty of appeal in regional living, including a chance to potentially reduce your home loan.

Is a tree or sea change on your horizon?

News
Is a tree or sea change on your horizon? Fresh air, no bumper-to-bumper traffic and more affordable home prices. There’s plenty of appeal in regional living, including a chance to potentially reduce your home loan.

Why three-in-four Aussies turn to a broker for home loan help

News
Why three-in-four Aussies turn to a broker for home loan help You might have seen a headline or two about a particular big bank being at war with brokers. Nothing could be further from the truth. Our mission is – and always will be – putting you first. That’s why three in every four borrowers now come to us for help.

Why three-in-four Aussies turn to a broker for home loan help

News
Why three-in-four Aussies turn to a broker for home loan help You might have seen a headline or two about a particular big bank being at war with brokers. Nothing could be further from the truth. Our mission is – and always will be – putting you first. That’s why three in every four borrowers now come to us for help.

Why three-in-four Aussies turn to a broker for home loan help

News
Why three-in-four Aussies turn to a broker for home loan help You might have seen a headline or two about a particular big bank being at war with brokers. Nothing could be further from the truth. Our mission is – and always will be – putting you first. That’s why three in every four borrowers now come to us for help.

First home buyers turn to Bank of Nan and Pop

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First home buyers turn to Bank of Nan and Pop Nan and Pop have always been good for birthday money, but one-in-10 grandparents are taking their generosity to the next level: helping their grandkids buy a first home.

First home buyers turn to Bank of Nan and Pop

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First home buyers turn to Bank of Nan and Pop Nan and Pop have always been good for birthday money, but one-in-10 grandparents are taking their generosity to the next level: helping their grandkids buy a first home.

First home buyers turn to Bank of Nan and Pop

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First home buyers turn to Bank of Nan and Pop Nan and Pop have always been good for birthday money, but one-in-10 grandparents are taking their generosity to the next level: helping their grandkids buy a first home.

What you should know before buying ‘subject to finance’

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What you should know before buying ‘subject to finance’ Not sure if you’ll get the thumbs up for a home loan? But you really, really like that house that just popped up? Making an offer ‘subject to finance’ could be the right move. Here’s how it works.

What you should know before buying ‘subject to finance’

News
What you should know before buying ‘subject to finance’ Not sure if you’ll get the thumbs up for a home loan? But you really, really like that house that just popped up? Making an offer ‘subject to finance’ could be the right move. Here’s how it works.

What you should know before buying ‘subject to finance’

News
What you should know before buying ‘subject to finance’ Not sure if you’ll get the thumbs up for a home loan? But you really, really like that house that just popped up? Making an offer ‘subject to finance’ could be the right move. Here’s how it works.

Not feeling the budget love? 4 ways you could still get ahead

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Not feeling the budget love? 4 ways you could still get ahead If the latest federal government budget is leaving you hungry for perks and savings, you’re not alone. We’ve had a brainstorm and here are four ways you could start working towards your property goals now.

Not feeling the budget love? 4 ways you could still get ahead

News
Not feeling the budget love? 4 ways you could still get ahead If the latest federal government budget is leaving you hungry for perks and savings, you’re not alone. We’ve had a brainstorm and here are four ways you could start working towards your property goals now.

Not feeling the budget love? 4 ways you could still get ahead

News
Not feeling the budget love? 4 ways you could still get ahead If the latest federal government budget is leaving you hungry for perks and savings, you’re not alone. We’ve had a brainstorm and here are four ways you could start working towards your property goals now.

Low deposit scheme helps over 150,000 families buy sooner

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Low deposit scheme helps over 150,000 families buy sooner Whether you’re rat running your local streets, or have a knack for always picking the fast-moving supermarket queue – everyone loves a good time-saving hack. Well, today we’ll let you in on a scheme that could get you into your first home years – yep years – sooner!

Low deposit scheme helps over 150,000 families buy sooner

News
Low deposit scheme helps over 150,000 families buy sooner Whether you’re rat running your local streets, or have a knack for always picking the fast-moving supermarket queue – everyone loves a good time-saving hack. Well, today we’ll let you in on a scheme that could get you into your first home years – yep years – sooner!

Low deposit scheme helps over 150,000 families buy sooner

News
Low deposit scheme helps over 150,000 families buy sooner Whether you’re rat running your local streets, or have a knack for always picking the fast-moving supermarket queue – everyone loves a good time-saving hack. Well, today we’ll let you in on a scheme that could get you into your first home years – yep years – sooner!

Here’s why your borrowing power might soon get a lift

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Here’s why your borrowing power might soon get a lift Who doesn’t love a tax cut? Most of us are now only weeks away from saving on our tax bills, with Stage 3 tax cuts to kick in from 1 July. But another key advantage is that the tax cuts could give your borrowing power a nice boost.

Here’s why your borrowing power might soon get a lift

News
Here’s why your borrowing power might soon get a lift Who doesn’t love a tax cut? Most of us are now only weeks away from saving on our tax bills, with Stage 3 tax cuts to kick in from 1 July. But another key advantage is that the tax cuts could give your borrowing power a nice boost.

Here’s why your borrowing power might soon get a lift

News
Here’s why your borrowing power might soon get a lift Who doesn’t love a tax cut? Most of us are now only weeks away from saving on our tax bills, with Stage 3 tax cuts to kick in from 1 July. But another key advantage is that the tax cuts could give your borrowing power a nice boost.

What you should know before buying ‘subject to finance’

News
What you should know before buying ‘subject to finance’ Not sure if you’ll get the thumbs up for a home loan? But you really, really like that house that just popped up? Making an offer ‘subject to finance’ could be the right move. Here’s how it works.

What you should know before buying ‘subject to finance’

News
What you should know before buying ‘subject to finance’ Not sure if you’ll get the thumbs up for a home loan? But you really, really like that house that just popped up? Making an offer ‘subject to finance’ could be the right move. Here’s how it works.

What you should know before buying ‘subject to finance’

News
What you should know before buying ‘subject to finance’ Not sure if you’ll get the thumbs up for a home loan? But you really, really like that house that just popped up? Making an offer ‘subject to finance’ could be the right move. Here’s how it works.

Not feeling the budget love? 4 ways you could still get ahead

News
Not feeling the budget love? 4 ways you could still get ahead If the latest federal government budget is leaving you hungry for perks and savings, you’re not alone. We’ve had a brainstorm and here are four ways you could start working towards your property goals now.

Not feeling the budget love? 4 ways you could still get ahead

News
Not feeling the budget love? 4 ways you could still get ahead If the latest federal government budget is leaving you hungry for perks and savings, you’re not alone. We’ve had a brainstorm and here are four ways you could start working towards your property goals now.

Not feeling the budget love? 4 ways you could still get ahead

News
Not feeling the budget love? 4 ways you could still get ahead If the latest federal government budget is leaving you hungry for perks and savings, you’re not alone. We’ve had a brainstorm and here are four ways you could start working towards your property goals now.

Low deposit scheme helps over 150,000 families buy sooner

News
Low deposit scheme helps over 150,000 families buy sooner Whether you’re rat running your local streets, or have a knack for always picking the fast-moving supermarket queue – everyone loves a good time-saving hack. Well, today we’ll let you in on a scheme that could get you into your first home years – yep years – sooner!

Low deposit scheme helps over 150,000 families buy sooner

News
Low deposit scheme helps over 150,000 families buy sooner Whether you’re rat running your local streets, or have a knack for always picking the fast-moving supermarket queue – everyone loves a good time-saving hack. Well, today we’ll let you in on a scheme that could get you into your first home years – yep years – sooner!

Low deposit scheme helps over 150,000 families buy sooner

News
Low deposit scheme helps over 150,000 families buy sooner Whether you’re rat running your local streets, or have a knack for always picking the fast-moving supermarket queue – everyone loves a good time-saving hack. Well, today we’ll let you in on a scheme that could get you into your first home years – yep years – sooner!

Here’s why your borrowing power might soon get a lift

News
Here’s why your borrowing power might soon get a lift Who doesn’t love a tax cut? Most of us are now only weeks away from saving on our tax bills, with Stage 3 tax cuts to kick in from 1 July. But another key advantage is that the tax cuts could give your borrowing power a nice boost.

Here’s why your borrowing power might soon get a lift

News
Here’s why your borrowing power might soon get a lift Who doesn’t love a tax cut? Most of us are now only weeks away from saving on our tax bills, with Stage 3 tax cuts to kick in from 1 July. But another key advantage is that the tax cuts could give your borrowing power a nice boost.

Here’s why your borrowing power might soon get a lift

News
Here’s why your borrowing power might soon get a lift Who doesn’t love a tax cut? Most of us are now only weeks away from saving on our tax bills, with Stage 3 tax cuts to kick in from 1 July. But another key advantage is that the tax cuts could give your borrowing power a nice boost.

How to know if you’re paying a fair price

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How to know if you’re paying a fair price We all love the idea of nabbing a bargain property, but for most home buyers the real issue is whether they’re overvaluing a place – and paying too much in the process.

How to know if you’re paying a fair price

News
How to know if you’re paying a fair price We all love the idea of nabbing a bargain property, but for most home buyers the real issue is whether they’re overvaluing a place – and paying too much in the process.

How to know if you’re paying a fair price

News
How to know if you’re paying a fair price We all love the idea of nabbing a bargain property, but for most home buyers the real issue is whether they’re overvaluing a place – and paying too much in the process.

Can you remember your home loan interest rate?

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Can you remember your home loan interest rate? Where you put your car keys, who won the footy premiership three years back, the new prime minister of New Zealand’s name – all very much socially acceptable things to forget. Your home loan rate shouldn’t be on that list.

Can you remember your home loan interest rate?

News
Can you remember your home loan interest rate? Where you put your car keys, who won the footy premiership three years back, the new prime minister of New Zealand’s name – all very much socially acceptable things to forget. Your home loan rate shouldn’t be on that list.

Can you remember your home loan interest rate?

News
Can you remember your home loan interest rate? Where you put your car keys, who won the footy premiership three years back, the new prime minister of New Zealand’s name – all very much socially acceptable things to forget. Your home loan rate shouldn’t be on that list.