The Reserve Bank of Australia’s (RBA) record interest rate hikes have driven a wave of refinancing activity as households seek to mitigate the impact on their budgets:
The RBA on Tuesday hiked interest rates another 0.25%, which will lift the indicator discount variable mortgage rate to 6.70%, up from 3.45% in April 2022 prior to the RBA’s first rate hike:
A household carrying a $500,000 variable rate mortgage at this indicator rate is facing an increase in repayments of 45% from their pre-tightening level, adding around $1,000 per month in mortgage repayments:
The coming months will become increasingly challenging for many more borrowers who will exit ultra-cheap pandemic fixed rate mortgages and reset to rates that are at least double this level.
But by refinancing to one of the lowest variable rates on the market, borrowers could save potentially thousands of dollars annually in mortgage repayments.
The process is also straight forward.
We at MacroBusiness have partnered with Compare n Save to launch a new home loan comparison service.
This service helps you compare hundreds of loans to potentially save you thousands of dollars in mortgage repayments. And when you are ready to proceed, the team at Compare n Save will manage the entire application process for you.
Try the Compare n Save comparison service for yourself. It takes less than a minute:
Compare 100s of loans in seconds, hassle free…..
and when you’re ready to apply, we’ll manage the process for you.
I Want To Refinance
I Need A Loan
For example, if you are looking for a better deal on your mortgage, simply hit the “I Want To Refinance” button, enter the amount that you wish to borrow and the interest rate that you are currently paying. Then the Compare n Save tool will show you in simple terms how much you could save by refinancing, alongside loan options.
Peruse the available loans on offer and if you want to proceed with an application, simply hit the Enquire button, fill out your contact details and the team at Compare n Save will call you back to get the process moving. Simple as that.
As an example, consider a borrower seeking to refinance a $500,000 loan on a home valued at $700,000 and currently paying the RBA’s indicator discount variable mortgage rate of 6.45%. They could save $572 per month by refinancing to the lowest rate on offer:
The Compare n Save tool also lists hundreds of loans that a borrower can compare, starting from cheapest to more expensive.
If you go through with a loan, MB gets a cut of the upside so you will be aiding the site as well.
The RBA’s record interest rate hikes are unavoidable. But at least you can lessen the pain by ensuring that you are paying the lowest possible rate.
