Whether you have a home loan, a personal loan or a car loan, it’s likely that you’d prefer your debt to be paid off as soon as possible. The longer you owe money to a bank or lender, the more interest you’ll be charged, until the total cost eventually exceeds any benefits offered by the loan.
While there are certainly benefits to getting your mortgage from a major bank like Australia’s Big Four, it’s the smaller lenders that tend to offer the more competitive interest rates, fees and charges that give the big banks a run for their money.
One surprise to come out of Australia’s 2017 Federal Budget was the introduction of a new 'budget repair' levy on Australia’s big banks.
Even if you didn’t pay much attention to the 2017 federal budget, you may remember how it was presented a little differently. Rather than focusing solely on surpluses versus deficits, the federal government sorted its borrowing into "good debt" and "bad debt".
Many of us get hung up on interest rates when comparing different home loans. It’s easy to understand why – “the lower the rate, the better the loan” is a very simple formula to understand.
The main reason people refinance their home loan is to save money. But sometimes people make a crucial mistake and actually lose money.
You may have heard that refinancing your home loan to a cheaper rate can help you pay off your mortgage sooner. This can be true but there are certain steps you need to follow to make sure this is the case.
^Words such as "top", "best", "cheapest" or "lowest" are not a recommendation or rating of products. This page compares a range of products from selected providers and not all products or providers are included in the comparison. There is no such thing as a 'one- size-fits-all' financial product. The best loan, credit card, superannuation account or bank account for you might not be the best choice for someone else. Before selecting any financial product you should read the fine print carefully, including the product disclosure statement, fact sheet or terms and conditions document and obtain professional financial advice on whether a product is right for you and your finances.