How much could refinancing your home loan save you?
According to APRA figures published by Guardian Australia earlier this year, around 80% of all owner occupier home loans are controlled by either ANZ, Commonwealth Bank, NAB or Westpac.
And given that, according to the Mozo database, the average big four variable package rate for a $400,000 owner-occupier home loan, with an 80% LVR over 30 years is currently 4.58%, it makes sense that many homeowners could potentially save.
By comparison, the average variable rate in the Mozo database for the same loan scenario above is currently 4.35%, while Reduce Home Loans’ Rate Lovers Variable Home Loan, currently the lowest rate in the Mozo database, is even lower at 3.44% (3.51% comparison rate*).
But just how much could that rate difference translate to when it comes to your back pocket?
According to the Mozo home loan repayments calculator, a borrower with a $400,000 home loan making principal and interest repayments over 30 years would need to pay $2,046 a month on a loan with the average big bank packaged interest rate of 4.58%.
However, if they were to take up a home loan with the average rate in the Mozo database of 4.35%, that monthly repayment would fall to $1,991, and it would drop even further to $1,783 each month with the Reduce Home Loans rate of 3.44% (3.51% comparison rate*).
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Think now’s the time to finally think about refinancing your home loan? See what’s out there by checking out some of the hot home loan deals in the table above, or compare even more offers using Mozo’s handy refinance comparison tables.