75% of Australians do not know their home loan interest rate, according to the Herald Sun.
You could be paying far less in interest on your home loan by getting the know-how and refinancing to a better rate.
Following two consecutive Cash Rate cuts by the Reserve Bank of Australia, it seems every Australian with a home loan is looking to refinance for a better rate. The Cash Rate is sitting at a record low of 1.00% following a 0.5% drop over June and July; affecting all types of credit and loan facilities in the finance market.
But the question remains – do you actually know your current home loan interest rate?
How much is too much?
Australian home owners could save tens of thousands of dollars – money in your pocket – by switching from a rate starting with a 4 to one starting with a 2.
Loans beginning with “2” will become the norm
RateCity research director Sally Tindall says variable rates starting with a 2 may well become the norm as more rate cuts are on the cards for the near future.
“With two more rate cuts on the cards, we could see the lowest variable rate drop below 2.60, potentially even below 2.50 per cent.”
Mortgages should not be a set and forget investment – think about how often you review your other finances and budgets. Home loans should fit in with your whole budget strategy.
Use our calculator to compare interest rates and loan terms to see how much you could save with a rate starting with a 2. You’ll be surprised.