Borrow
How the cash rate hold can still save you thousands
While yesterday’s cash rate announcement won’t have an impact on mortgage rates, borrowers are still around $34,602 better off based on past cuts, according to new research.
How the cash rate hold can still save you thousands
While yesterday’s cash rate announcement won’t have an impact on mortgage rates, borrowers are still around $34,602 better off based on past cuts, according to new research.
Canstar data has shown borrowers who have received part of previous rate cuts will still save thousands of dollars from the previous credit reductions.
As a result, Canstar’s Effie Zahos has advised mortgage-holders that they should look to change their rates if they haven’t received the full value of previous cuts.
“Borrowers who have had their loan for three years or more and have not renegotiated a better rate with their lender are likely on an interest rate of around 4.04 per cent,” she stated.
“These home owners could be paying up to 1.35 per cent more than they need to be given the lowest variable rate today is 2.64 per cent.”
For borrowers who received 0.59 per cent of the 75 basis point reduction so far, they will have a rate that has been reduced from 4.41 per cent to 3.82 per cent.
Such a reduction means that the average borrower will be in a position to pay off their home loan four years and two months earlier than they would have otherwise.
“Borrowers maintaining their home loan repayments on pre-cut levels in a period of falling interest rates and in a record-low interest rate environment is the right combination to see home owners get ahead,” Ms Zahos outlined.
She said that borrowers can be taking advantage of favourable market conditions, including low credit rates.
She said some mortgage-holders are already catching on, “preparing for potential tougher times ahead and building a financial buffer”.
About the author
About the author
Loans
Responsible lending axed: Who will win and who will lose?
The announcement that the Australian government would be loosening responsible lending restrictions has been met with mixed feelings from the financial sector – so who might be better off as a resul...Read more
Loans
Government eases back responsible lending laws
The Morrison government wants to roll back credit standards set a decade ago to help aid in the national recovery. ...Read more
Loans
Banks slash rates prior to October cash call
Three of Australia’s largest financial institutions have all cut their variable rate charged on mortgages as speculation increases for an October cash rate cut. ...Read more
Loans
Looking for a loan pre-approval? Here are 5 things you need to know
Applying for a mortgage pre-approval can be a real boost for anyone looking to purchase property – but it’s important that would-be home owners do have a good understanding of what a pre-approval ...Read more
Loans
The remarkably simple way to pay off your mortgage sooner
For those looking to get out of debt quicker, a mortgage broker has explained a remarkably simple trick to pay off a home loan sooner. ...Read more
Loans
4 little-known benefits of using a mortgage broker
Mortgages can be confusing at the best of times. Add in a myriad of lenders offering different rates with various benefits, plus an extremely cautious banking system, and it may be easier to get an e...Read more
Loans
Big 4 bank estimates 15k customers cannot pay mortgage
One of Australia’s big four banks has estimated that up to 15,000 of its mortgage customers may not be able to resume repayments, as the bank begins a two-month engagement process to assess the impa...Read more
Loans
Banks call customers as mortgage deferral period ends
A small but growing number of borrowers who have put their mortgage or business loan on hold during the COVID-19 pandemic are beginning to pay their debts as the first six-month deferral period comes ...Read more
Loans
Responsible lending axed: Who will win and who will lose?
The announcement that the Australian government would be loosening responsible lending restrictions has been met with mixed feelings from the financial sector – so who might be better off as a resul...Read more
Loans
Government eases back responsible lending laws
The Morrison government wants to roll back credit standards set a decade ago to help aid in the national recovery. ...Read more
Loans
Banks slash rates prior to October cash call
Three of Australia’s largest financial institutions have all cut their variable rate charged on mortgages as speculation increases for an October cash rate cut. ...Read more
Loans
Looking for a loan pre-approval? Here are 5 things you need to know
Applying for a mortgage pre-approval can be a real boost for anyone looking to purchase property – but it’s important that would-be home owners do have a good understanding of what a pre-approval ...Read more
Loans
The remarkably simple way to pay off your mortgage sooner
For those looking to get out of debt quicker, a mortgage broker has explained a remarkably simple trick to pay off a home loan sooner. ...Read more
Loans
4 little-known benefits of using a mortgage broker
Mortgages can be confusing at the best of times. Add in a myriad of lenders offering different rates with various benefits, plus an extremely cautious banking system, and it may be easier to get an e...Read more
Loans
Big 4 bank estimates 15k customers cannot pay mortgage
One of Australia’s big four banks has estimated that up to 15,000 of its mortgage customers may not be able to resume repayments, as the bank begins a two-month engagement process to assess the impa...Read more
Loans
Banks call customers as mortgage deferral period ends
A small but growing number of borrowers who have put their mortgage or business loan on hold during the COVID-19 pandemic are beginning to pay their debts as the first six-month deferral period comes ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
