Rising rates? 5 steps to save on mortgage repayments
A guide from Suzanne Taylor at Mortgage Choice Newtown.
Image source: iStock
It’s been three months since the Reserve Bank called time on record low interest rates. Suzanne Taylor, owner of Mortgage Choice in Newtown, and her team have been helping locals save on their home loans for over 21 years. With three rate hikes in as many months, homeowners across the Inner West are facing the challenge of rising home loan repayments. With the Reserve Bank warning of more rate rises to come, now is the time to act.
Suzanne shares five steps that may help you lower your loan repayments.
1. Know the rate you’re paying
Research by Mortgage Choice found more than half of homeowners don’t know their current home loan rate, yet understanding your mortgage rate is the starting point to know if you’re paying too much. If you’re unsure about the rate you’re paying, ask your lender or call my office and we can contact your lender on your behalf.
2. Challenge your lender
Your loyalty to the bank probably isn’t being rewarded. Reserve Bank data shows new borrowers continue to pay a lower rate than established customers. This gives you plenty of scope to call your lender and ask for a rate discount. If you don’t feel comfortable haggling with the bank, my team at Mortgage Choice in Newtown can do the talking for you. 3. Consider taking your business elsewhere
While your lender may provide a small rate discount if you ask, it’s still worth checking out the potential savings you could make by switching to a new lender. Many lenders are offering competitive rates and some are also offering cashbacks worth thousands of dollars to homeowners who refinance. 4. Decide on fixed versus variable
Many homeowners are asking, “Is now the time to fix?” Fixed rates are currently significantly higher than variable rates at present — we can discuss your repayments options with you if you’re unsure what to do. If you think you might be paying too much, it is worth talking to our Newtown team to know whether fixed or variable would be best for you. Or, whether you could benefit from splitting your loan into a fixed and variable component. 5. Leave the hard yards to an expert team
With hundreds of home loans to choose from, finding the best deals on the market can be time consuming for homeowners. Unsurprisingly, a recent Mortgage Choice survey found over 60% of borrowers said refinancing was a hassle they’d like to avoid. The thing is, refinancing has the potential to put thousands of dollars back into your pocket each year.
That’s where an experienced mortgage broker can help. Our team uses software that can identify the loan that’s right for your needs – at a competitive rate. We can also show you how much you could save each month by refinancing. Then, if you choose to go ahead, we do much of the legwork for you.
If you’re pressed for time, uncertain about where to start with refinancing, or have concerns about securing home loan approval, Mortgage Choice in Newtown is just a phone call away.
Contact us today for a chat about how you can save even when rates are rising.
Mortgage Choice in Newtown
(02) 9517 1818
557a King Street Newtown
Monday — Friday, 9–5pm