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 - rates updated daily

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  • placeholder
    Mozo Experts Choice 2021
    Smart Booster Home Loan

    2 Year Discounted Variable Rate, Owner Occupier, Principal & Interest, <80% LVR

    interest rate
    comparison rate
    Initial monthly repayment
    1.85% p.a.variable for 24 months and then 2.25% p.a. variable
    2.21% p.a.

    New super low introductory rate home loan for two years. Min 20% deposit. No monthly or ongoing fees. Fast settlement times. Mozo award-winning online lender. Friendly, local Australian based team.

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    Details
  • placeholder
    Mozo Experts Choice 2021
    UHomeLoan

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    1.85% p.a.
    fixed 3 years
    2.24% p.a.

    $0 fees and easy application. Choose between weekly, fortnightly or monthly repayments. 3 year fixed rates are for new Owner Occupier Principal & Interest loans.

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    Details
  • placeholder
    Mozo Experts Choice 2021
    Celebrate Variable Home Loan

    <60% LVR, Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    1.99% p.a. variable
    1.99% p.a.

    Fast and efficient online application. Automatic discounts as loan is paid down. Free extra repayments and redraw facility. Zero fees. Min 40% deposit required. Winner of three Mozo Expert's Choice Awards for 2021.

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    Details
  • placeholder
    Variable Home Loan

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    1.99% p.a. variable
    1.99% p.a.

    Refinance only. Super-fast digital application process. Zero upfront fees. No on-going service fees. Free 100% offset sub account. Apply Online & Refinance before 29 October 2021 for the chance to WIN your home loan interest free - Save up to $1.1 million. T&Cs apply.

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    Details
  • placeholder
    Basic Home Loan

    Fixed, Owner Occupier, Principal & Interest, LVR<70%

    interest rate
    comparison rate
    Initial monthly repayment
    2.09% p.a.
    fixed 3 years
    2.32% p.a.

    No upfront or ongoing fees. Free extra repayments and redraw facility. Option to earn Qantas points. Min 30% deposit required. Borrow up to $750,000.

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    Details
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    Mozo Experts Choice 2021
    Variable Home Loan Special

    Owner Occupier, Principal & Interest, LVR <70%

    interest rate
    comparison rate
    Initial monthly repayment
    1.99% p.a. variable
    2.02% p.a.

    Special rate applies to home loan applications submitted by 31 October 2021. Unlimited additional repayments, free redraw, 100% offset account. 30% deposit required. Simple online application. Low Cost Home Loan winner in the Mozo Expert's Choice Awards for 2021.

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    Details

* 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.

^See information about the Mozo Experts Choice Home Loan Awards

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