Is your mortgage a low fixed interest rate? Have you enjoyed receiving the letters that the rates are increasing for the last 9 months? The truth behind the matter is that if you do nothing and your interest rate will revert back to the standard variable rate. Depending on which bank you are with this could be up to 7.19% and you could be looking at an absurd jump in monthly payments, not including the next increases the RBA will be putting in place.
What does that mean for you?
Well let me give you an example, John is paying off his $500,000 mortgage with a 1.99% fixed interest rate over 25 years and his current monthly repayments are $2111. If John lets his fixed-rate expire the bank he is with will automatically put John on a variable loan that will jump up to the current rate of up to 7.19%. Not a big deal right? Incorrect, John is now paying $3595 every month, which is a $1484 increase every month just in interest. That is over $17,000 every year, what would you do with $17,000?
What do we do about this?
What can you do to avoid this absurd jump in monthly payments? Loan Location has access to over 45 different lenders and can offer you either a low variable rate or a good fixed rate, not only that but many banks are offering cash backs of up to $5000 which will cover the cost of the refinance and keep some in your pocket as well. Don’t wait until it is too late- Even though your fixed rate might expire in months it is important to book a meeting ASAP so we can make sure you don’t ever have to pay more interest than needed.
