Save $60,000 with a variable home loan
Article by Mozo
Variable rates are heading north, but that doesn’t mean you need to suffer. There’s a pretty good chance your current home loan rate isn’t as low as it could be, so take a moment to health check your loan if you’re not sure.
So if you’ve been stuck with a big bank home loan for too long, now is the time to do something about it. Stop putting it off, stop worrying about the paperwork, just start looking.
There are a bunch of alternatives to the big brand banks out there, and they offer some great variable rate home loan products.
Credit unions and building societies are a great alternative to the banks as they are operated for the benefit of members, not shareholders. This means lower interest rates and fees.
Challenger banks like ING Direct and AMP are currently offering some great rates and incentives to entice mortgage customers away from the Big 4.
And if you’re happy with an online loan, you could look to one of the many specialist non-bank lenders like QuickDirect who are offering highly competitive rates.
So instead of footing the Big Bank profit bill, check out what these market leading products could save you (or which executive car you could buy yourself):
|LENDER||PRODUCT||VARIABLE RATE||COMPARISON RATE||AVERAGE COST||SAVING||(OR A NEW CAR)|
|Big Four||Average Standard Variable Rate Loan||7.49%||7.61%||$367,350||$0||No car for you!|
|RateBusters||Fightback Loan||6.43%||6.50%||$304,901||$62,449||BMW 320i|
|State Custodians||Breathe Easy Home Loan||6.47%||6.54%||$309,024||$58,326||Audi A4|
|BEAT Home Loans||RateBEATer||6.57%||6.58%||$312,024||$55,326||Alfa Romeo 159|
|QuickDirect||Basic VariableHome Loan||6.58%||6.58%||$312,443||$54,907||Rolls Royce (1989)|
Combining interest rate, fees and charges based on a loan of $300,000 over 25 years. Rates correct as at 10/11/2010
It’s clear that a better loan can make a huge difference in the long run, so why not begin by comparing the entire home loan market now.
If you’re all ready to make the switch, read our home loan switching guide below.