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Mortgagees could save $50k by refinancing

Mortgagees could save $50k by refinancing

Following another RBA decision to keep the cash rate on hold, RateCity research has revealed the average mortgage holder could save tens of thousands by refinancing.

Owner-occupiers paying principal and interest at the average rate of 4.31 per cent can save up to $50,076 by switching to one of the lowest rates on the market of 3.44 per cent.

Investors paying interest-only at the average rate of 4.89 per cent can save up to $59,524 by switching to one of the lowest rates on the market of 3.94 per cent.

“Just because the cash rate’s standing still, doesn’t mean mortgage holders should,” said RateCity money editor Sally Tindall.

“A $50,000 saving is not to be sneezed at. That’s a lot of people’s annual salaries, right there,” she said.

A recent RateCity survey found that a third of Australians hadn’t changed lenders since they opened their first bank account as a child.

“If you’re struggling to make ends meet it, it might be time to break up with your bank.

“Refinancing to a lower cost lender can help you pay down your debt before rates rise,” she said.

RateCity Home Loan Top Picks

Principal-and-interest loans for owner-occupiers

LenderProductAdvertised rateComparison rate
Reduce Home LoansRate Buster Standard Variable3.44%3.44%
Homestar FinanceVariable Rate Home Loan3.49%3.53%
Freedom LendFreedom Variable Home Loan3.49%3.49%

Interest-only loans for investors

LenderProductAdvertised rateComparison rate
Homestar FinanceVariable rate investment loan (IO)3.94%3.98%
Reduce Home LoansInvestor Rate Buster (IO)4.04%4.10%
Pacific Mortgage GroupStandard variable investment loan (IO)4.09%4.09%

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