RBA doesn’t have to be a dark horse this Cup day

1st of November 2013 | by Laine Gordon

No matter which horse comes in number one next Tuesday, it’s a safe bet that the easiest return Aussies will get all year will be found through refinancing.

Australia’s leading financial comparison website, RateCity (www.ratecity.com.au), has found that the average punter with a home loan, could be thousands of dollars ahead before the next Melbourne Cup, simply by switching to a great rate.

Alex Parsons, CEO of RateCity.com.au, said don’t wait for the race that stops the nation or the Reserve Bank board meeting to give you a financial gain – get it yourself by comparing and switching your financial products,” he said.

“Switching from the average mortgage rate to the lowest option, borrowers with a typical $300,000 home loan will save $1800 per year. In the first 12 months you would more than offset the set-up costs of the new loan. Where else can you get a return as good on your punt?”

RateCity shows that the average basic variable home loan rate is currently 5.2 percent, and there are 26 variable and 215 fixed home loans (up to 3 years) with rates below this available through the site.

Borrowers aren’t the only ones that can get on the right track to big financial wins this spring, savers who switch can get the kind of form trainers dream about, according to Parsons.

“There are around 2.5 million variable home loans in Australia, but almost every Australian has a savings account of some sort. High deposit rates are there if you know where to look,” he said.

“On average, savings accounts pay about 3 percent interest, but Australians could boost their return by more than 50 percent if they shop around for great rates. At the moment institutions are paying up to a maximum rate of 4.67 percent – so take the reins on your money today, what have you got to lose?”

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