Aussie home owners may be missing out on thousands of dollars in savings

Couple in front of their home happy to have refinanced

Australians who don’t refinance their home loans could be currently missing out on saving thousands of dollars that could go into their savings, says new research commissioned by Aussie Home Loans.

In the last 12 months, only 1 in 5 mortgage holders have refinanced their home loans, even though 6 in 10 of Australians believe they currently don’t have a good deal. 

Despite low interest rates, many existing home loans are not refinanced. Mozo and the Aussie Home Loans research’s data shows that of approximately 6 million outstanding mortgages in Australia. According to the Australian Bureau of Statistics less than 310,000 of those have been refinanced in the last year (to June 2021).

Even dropping one percent on your home loan interest rate may potentially save you hundreds of dollars from your monthly repayment. 

In a recent case study done by homeloans.com.au, it was discovered that some of its customers were able to use the money they gained from refinancing into purchasing an investment property.

“After refinancing with homeloans.com.au, we were ecstatic to find out the repayments for our house went down by nearly $900 a month. This meant we had the budget available to purchase our first investment property,” said Melissa Peters, homeloans.com.au customer from the case study.

“Even while paying off two loans – the loan for our house and the loan for our new investment property – our total monthly repayments were about $160 lower than what we’d been paying for the one loan with our previous lender.” 

A large number of mortgage holders possibly don’t understand the financial opportunities they may get from refinancing their loans.

When you refinance your home loan, you are moving your mortgage across to a new lender who offers a more competitive package with better interest rates and or more flexible features. 

RELATED: How do I refinance my mortgage?

With so many Australians in lockdown, refinancing may not be a top priority for many. But with so many home loans under 2%, it may be one of the best times to refinance your mortgage.

Don’t miss out on the possibility of saving hundreds or thousands of dollars from your mortgage repayments. Check out Mozo’s refinance home loan comparison table to find your new possible lender.

Refinance your home loan - last updated 24 January 2022

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    1.99% p.a. variable
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    Same low variable rate for all. No upfront or ongoing fees. Approval in minutes not weeks with a fast digital application. 100% offset sub account with no account or redraw fees. Comes with a Visa debit card, mobile App, and digital wallet (Apple and Google Pay). Refinance only. 25% deposit or equity required.

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* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

** Initial monthly repayment figures are estimates only, based on the advertised rate, loan amount and term entered. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

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