Large benefits in seeking better home loan rate
SAVINGS FROM REFINANCING
Based on an average owner-occupier paying principal and interest who has not renegotiated their rate since the start of the hikes.
* The borrower would be paying an interest rate of 6.11 per cent.
* Four lenders are offering rates below 4.75 per cent.
* If the borrower had $500,000 debt and 25 years remaining on their home loan today, and they switched to a rate of 4.75 per cent they would see their rate drop 1.36 percentage points.
* Their monthly repayments would go down by $405, but there would be switch fees to consider (around $1150 in total).
* The borrower would save $12,000 in the first two years of refinancing.
(Source: Rate City)