Following not one but two RBA cash rate cuts this year and a series of cash rate cuts last year, home loan interest rates are the lowest they’ve ever been. So if you’re feeling restless this weekend and want to take a little break from R&R time, why not figure out how much you could save by refinancing your home loan!
How much could you save by refinancing?
After crunching some numbers, our team of data experts figured out that you could save approximately $2,727 in one year, by switching from the average variable home loan rate to the most competitive variable rate in the Mozo database.
How did we figure out the savings?
The good news is it’s fairly straightforward and you can do it too.
We simply took the example of a $400,000 30-year home loan^ and compared how much someone could save by switching from the average 3.45% p.a.^^ variable home loan rate to Reduce Home Loans Rate Slasher Variable Home Loan, for which rates start competitively low at 2.39% p.a. (2.39% p.a. comparison rate*).
Want to do the same? You can use Mozo’s home loan comparison calculator to compare more home loan interest rates and see how much you could save.
A few fees to remember when refinancing
Before you sign on the dotted line, you’ll want to make sure that the savings are worth it, especially when measured against the fees.
Fees you may be faced with when refinancing include:
• A break fee from your current home loan.
• An application fee for the home loan you want to switch to.
• A valuation fee - should your new lender want a more up-to-date valuation done on your property.
• A settlement/legal fee. Once everything is settled, you may have to pay a settlement fee.
Keen to learn more about refinancing? Check out our guide to refinancing your home loan for more tips and tricks.
^The example given is for a $400,000 30-year, principal and interest, owner-occupier home loan with an LVR of 80%.
^^Average variable home loan interest rate correct as of Thursday 9th April 2020.