Nearly one in three Australians don’t know what their home loan rate is, according to findings from the Australian Mortgage Council.
While this news might not shock many, it means that a lot of Mudgee homeowners could be paying more on their home loans than they need to be.
For those who haven’t been following the latest interest rate news, the official cash rate has dropped 2.25% since February 2012 to the record low of just 2%, but this doesn’t necessarily mean that your home loan provider has passed on the savings.
If you don’t know your home loan rate then it is definitely recommended that you call up your lender to find out the interest rate you’re paying and compare it to what else is available on the market.
Many lenders are offering attractive and competitive deals at the moment to help encourage new customers so it’s well worth doing some research to see what else is out there. If you find a better rate then you have the option of either switching providers or asking your current lender if they can improve their offering to keep your business – you would be surprised by the savings that can be made by simply making a phone call.
Homeowners should take the time and review their home loan every few years and compare it to what’s on the market. Interest rates are an important consideration when comparing loans, but there are other home loan features that are worth considering when you shop around, such as redraw facilities and flexible repayment options.
If you’re looking for a new home loan or are considering switching home loans then feel free to come in and have a chat to us at Professionals Mudgee Real Estate for our recommendations on which local banks and brokers you should be talking to.