Savvy Aussie home owners are saving an average of 0.66 per cent on their home loan interest rate when they refinance, new data from Aussie Home Loans reveals*.
Based on Aussie’s average refinance loan size of $346,310, customers have saved over $134 per month or $1,614 per year on average when refinancing.
Looking across the states and territories, leading the pack are Aussie customers refinancing in the Northern Territory, who saw their mortgage interest rate drop by an average 1.29 per cent or $243 per month; followed by the ACT at 0.85 per cent ($182); WA at 0.82 per cent ($160); Queensland at 0.78 per cent ($144); SA at 0.64 per cent ($105); Victoria at 0.63 per cent ($130); Tasmania at 0.63 per cent ($88); and NSW at 0.61 per cent ($136).
Aussie Chief Executive Officer, James Symond, said “The national average interest rate fall from 4.67 per cent to 4.01 per cent shows that even in a low interest rate environment there are still deals to be done and savings to be made when you get expert help.
“Even though the RBA hasn’t moved rates for over two years, lenders have been making their own interest rate adjustments, with many increasing rates for existing customers while saving their best deals for new borrowers. In this market it certainly pays to keep an eye on your home loan rate and review it with your broker regularly or at least every year. Despite the Royal Commission’s findings, our data proves Aussie Brokers are saving customers a fortune through the ongoing management of their home loans by finding them a better deal,” he said.
Further key findings:
- Singles are making bigger savings than joint borrowers, with single females saving 0.71 per cent and single males saving 0.72 per cent, versus a 0.64 per cent saving for joint borrowers on average;
- Customers who have had their home loan for six or more years recoup the biggest interest rate saving, down 1.89 per cent on average, followed by loans held for 4-5 years at 0.99 per cent; and
- Owner-occupiers are achieving a higher saving than investors, reducing their interest rates by of 0.81 per cent compared to 0.62 per cent on average.
“In general there is a lot more focus by borrowers and the media on interest rates, the property market and tightened home lending. Our data shows that despite this and even in markets where capital growth has been challenged like NT and WA, savings may still be found by securing a lower interest rate, putting valuable dollars back into customers’ pockets instead of the banks’.
“Complacency is the killer, so my top tip is to keep on top of your home loan and review it each year, just like a pink slip for your property. An annual home loan health check with your broker doesn’t cost you anything, and could save you thousands,” he added.
Aussie has more than 1,000 mortgage brokers across the country ready to help existing and new customers’ review their home loans. Until 30 April 2019, all customers who attend an appointment will go in the draw to win $15,000**.
*Based on over 11,300 settled refinance home loans through Aussie in the last two years.
**T&Cs apply, see aussie.com.au/promotions.