Why this is the time to refinance your home loan
Record low overall interest rates and falling fixed rate fixed term rates is really encouraging Australians to refinance old loans at old higher rates.
According to the Australian Bureau of Statistics, over 33,000 people refinanced their loans in May… up 30 per cent on April. I must admit Libby and I were amongst them as we took advantage of the great rates for fixing.
The total value of these refinanced home loans was $15 billion… up 26 per cent on April.
For example, on the average loan of $494,462, analysis from research group Finder shows the average standard variable rate from the Big Four banks is 4.04 per cent.
If that rate were to drop 0.5 per cent to 3.54 per cent, it would mean $36,287 saved over the life of the loan.
So start negotiating a better deal on your home loan now.