Eight out of ten Australians don’t know what interest rate they pay on their mortgage, so if you’re one of them it’s time to start pay- ing attention. Until recently you should have had a mortgage interest rate starting with a ‘3’. However, in recent weeks lenders have started to increase rates a little so finding a rate starting with a ‘3’ is getting a little harder. The key point is to make sure your ‘friendly’ lending institution isn’t taking you for a ride.
Interest rates have been at record lows and you need to be making sure the savings are being passed on to you. When it comes to your mortgage, you need to be proactive. I’ve never heard anyone say their lender rang them up to offer a better deal. The simple reality is that if you don’t ask, you don’t get. If you’re happy to continue paying whatever you’re paying then your lender will happily keep taking your money.
What does a little extra interest matter I hear you say? IT MATTERS A LOT!
On a 30-year mortgage of $350,000, the difference in repayments between paying 4.5% per annum in interest versus 3.9% per annum is only around $80 a month or $20 a week. However, over the life of the loan, that equates to around $36,000! That’s not pocket change.
So use your voice – demand a better deal. And if that doesn’t work, use your feet and take your business elsewhere.
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