Even if you are certain you want to get a loan from your current financial institution, seeing a Mortgage Australia broker is still your best bet because they will ensure you see the cheapest loans and special discounts that your current lender offers.
It’s very likely our broker will be able to get you a better deal than you currently have because your lender will probably be on our extensive ‘lending panel’ which encompasses around 90% of the loans organised in Australia.
Here’s a case study which illustrates how much we can save you – even without you having to change banks:
Refinancing Case Study
(David Ham – Mortgage Australia)
Clients: Michael 30 and Jenny 29, no children.
Michael is a self-employed electrician for the past 3 years, while Jenny has worked in an administrative job for the past 6 years. Their goal was to pay their home loan off faster. After seeing me speak at a breakfast meeting about the benefits of having their interest rates regularly reviewed Michael decided to call his own bank. Having been their client for 7 years he demanded a better interest rate than the 5.79% he was on.
A week later I spoke to him to see if we would like me to get a better deal for them. He told me not to worry as he had already done this – great news!!! I asked what the new rate was and he advised me he had gotten it reduced down to 5.13%, a monthly saving of $261.25 in lower interest. I asked Michael if he minded if I also tried with his bank to see what better rate they might come back to me with – he said no problem and gave me his details – I made a call to the lender and immediately over the phone got a further reduction to 4.75% – a further saving of $150.41 per month.
Michael was furious at the bank for not offering the same rate to him….. we booked an appointment and after reviewing his loans we looked at the structure and the way they handle their money and ended up changing loan providers to get a rate of 4.28% – they were now an additional $186.04 per month better off. In fact, their total interest saving was now $597.70 per month compared to their original loan. I also showed Michael and Jenny that if they kept their repayments at the same amount they were originally paying, they would own their home 4 years and 5 months sooner and save a massive $173,969 in interest.
Old interest rate 5.75%
New interest rate 4.28%
Savings – $597.70 per month or $7172.40 per year
Using the savings as extra repayments would:
Pay their loan off 4 years and 5 months sooner
Save $173,969 in interest and payments