Want to Save $8000 Off Your Mortgage Today?
– Want to save $8,000 off your mortgage? What about if you could do it today? We’ve been saving clients thousands of dollars every single day just by targeting this one thing and I’m going to show you how in this video. But first, let me introduce myself. G’day guys! My name’s Tim Guest. I’m Australia’s leading financial educator and the founder of Infinite Wealth and welcome to our #JustAskTim video series where you can get all your questions answered on anything finance, real estate and investment related and more. Now please like, comment and share this video and if it’s your first time tuning in, welcome along and thanks for joining us and don’t forget to follow or subscribe wherever you’re seeing this.
Our question today comes from Elena and Elena asked, “What are the best interest rates available “and should I refinance?” now, most people probably don’t realise there’ve been three major changes in the world of Australian finance over the past few months that have dramatically changed the landscape. The first was the removal of the restrictions the Australian Prudential Regulation Authority, that’s otherwise know as APRA, imposed to slow down the Sydney and Melbourne markets over the past few years. Now, these include limiting interest-only loans, high loan-to-value ratio loans, that’s loans with a small deposit, and investor loans. How most banks met these requirements were simply by increasing the interest rate on the loans they preferred not to give, resulting in many people paying higher than they should. Second, APRA then deemed that rates the banks are required to use when assessing an applicant was no longer appropriate in the current low interest rate environment. So typically banks are required to use an interest rate higher than the current interest rate to ensure a customer can still afford the loan if there were changes to interest rates.
Reducing this assessment rate has resulted in people being able to borrow 10 to 20% more than they could just three months ago which is opening up a huge opportunity for those whose loans had switched to principle & interest but previously they had issues refinancing. Now, finally, there’ve been two interest rate cuts leaving us with very cheap money and the lowest ever interest rates on record. These three changes have opened up some really impressive deals with major lenders around the country allowing customers to save thousands with interest rates available under 3%. So let’s have a look at how you could save $8,000 today. It’s pretty common for people to still be on an interest rate of 4.5%. If you’re talking a $500,000 loan, that’s $22,500 worth of interest payments in a single year. Now, if you’re able to reduce that interest rate to 2.89%, which is the common interest rate available today, still a $500,000 loan, you’re going to be talking about interest of $14,450. Overall, that’s a saving of $8,050, just by refinancing. That’s 150 bucks a week.
Imagine the better use that you could put that money to, 150 bucks a week rather than giving it to a bank. Now keep in mind that there are other factors that you need to be considering when taking out a loan. So these could be things like additional fees, the structure of the loan and features like offset accounts and redraws. But even if you only reduce your interest rate by 1%, that’s still a saving of $5,000 a year So it’s critical that you must speak to a professional to ensure that the product is best for you and of course, our team at Infinite Finance are more than happy to have a chat to you, review your situation and provide you with your options at no cost. Now, look, guys, that’s pretty much it from me but before I go, just a couple of things. Don’t forget to like, comment and share this video and if it’s your first time tuning in, please follow or subscribe so you can see our videos moving on.
Don’t forget also to stay tuned later in the week for the Week In Real Estate where you can get all the top stories happening this week in finance, real estate and investment but apart from that, guys, have a great week and remember, there’s only one thing in life that makes a difference… Action!.
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