Switching Your Home Loan


Getting the most by switching your home loan

You might ask yourself, so why would anyone want to switch their home loan? The answer is quite simple, to get a better deal! Most Australians pay far too much on their mortage and much to their surprise there is always a better deal floating around somewhere in the market. The question is, if you knew there was a better deal out there for you too, why wouldn’t you want to grasp it and save money?

At SwitchMyLoan that is precisely what we’re here to do.

Many people don’t realise that you can actually change your home loan and get a better deal.

Consider the following scenario:

Jack and Jill took out a home loan in 2000 for $250,000.00 with a variable interest rate of 7.80% with Bank “A”. Their repayments over the years have changed and fluctuated just as official interest rates have. Then in 2013, Jack and Jill wondered whether or not they could perhaps save more on their loan. Bank “A” currently offers a variable interest rate of 6.10%. By using SwitchMyLoan’s online calculator Jack and Jill were able to see that because they have an LVR of 50% (that is, they have already paid back 50% of the value of their house), switching to Bank “Z” would see them be on an interest rate of 5.82% and therefore they would save a further $25 per week on their repayments!

Switching your home loan can be a terrific experience and help save that extra bit of money which will also help take months if not years off the remainder of your home loan.

Some important things to keep in mind are:

  • Check to see what your current home loan contract says about termination fees.
  • Check the current status of your LVR (Loan to Valuation Ratio). Anything over 80% and the bank will charge you LMI (Lender’s Mortgage Insurance) which can be in the thousands, so the best case scenario to switch your home loan is generally when your LVR is 75% and below.
  • Check out the annual fees of the home loan you want to switch to. You might save more on interest, but if the annual fees are higher is it really worth the move?

The great news is, at SwitchMyLoan we do all the work for you to make sure that you get access to range of great deals from lenders on attractive loan features such as offset accounts, redraw facilities, ongoing fees, and the ability to make additional repayments.

Try out our online interactive calculator here now or phone 1300 307 155 9am-9pm EST Mon-Sun to speak to us.

Call 1300 307 155 and start saving today!

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