Here’s an example of why it may pay to find a lower interest rate on your home loan.
For the sake of this example, let’s assume that the rate offered by your lender is 4.73% p.a. for their basic variable home loan, compared to a rate of 4.10% through Australian Unity.
It’s a difference of just 0.63% which doesn’t seem like much, but as you will see below, those savings add up over time. Some interest rates can be a lot more than 0.63% higher than loans we could find for you.
Assuming that rates remain unchanged, with your lender, the standard monthly repayment on a $350,000 loan would be $1,822, and your interest bill over the 30 year loan would be $305,758.
However, if you switched to the loan we arranged for you, your monthly repayment obligation may reduce to $1,692.
If you were to make repayments of the original amount of $1,822 per month, your interest bill over the term of the loan arranged through Australian Unity may be just $220,542 – a saving of $85,216 and you would repay your loan 3.8 years sooner.
That’s not a bad return for just switching your home loan with the help of Australian Unity. Call or email your financial adviser today and ask our friendly staff to help you make the switch and save.
Is the interest rate on your home loan as low as this?
Our mortgage brokers have access to loans from the major banks and other leading lenders – our brokers will help you find the best deal that is appropriate for you.
*Comparison rate based on a secured home loan of $150,000 over a 25 year period. Current as at 25 January 2016. 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 costs of the home loan.
Terms and Conditions, government fees and charges and normal lending criteria apply.
Disclaimer: This article is not legal advice and should not be relied on as such. Any advice in this document is general advice only and does not take into account the objectives, financial situation or needs of any particular person. You should obtain financial advice relevant to your circumstances before making investment decisions. Where a particular financial product is mentioned you should consider the Product Disclosure Statement before making any decisions in relation to the product. Whilst every care has been taken in the preparation of this information, Australian Unity Personal Financial Services Ltd does not guarantee the accuracy or completeness of the information. Australian Unity Personal Financial Services Ltd does not guarantee any particular outcome or future performance. Australian Unity Personal Financial Services Ltd is a registered tax (financial) adviser. Any views expressed are those of the author and do not represent the views of Australian Unity Personal Financial Services Ltd. If you intend to rely on any tax advice in this document you should seek advice from a tax professional. Australian Unity Personal Financial Services Ltd ABN 26 098 725 145, AFSL & Australian Credit Licence No. 234459, 114 Albert Road, South Melbourne, VIC 3205. This document produced in January 2016. © Copyright 2016