- A small cut to your interest rates can mean big savings
- During COVID-19, borrowers with steady jobs are well placed to refinance their home loan and secure a better deal
- It's not just the interest rate that can impact the cost of your home loan
Despite the uncertainty the coronavirus is creating in Australia's housing market, there's one property move home owners can make safely and easily from the home desk or even the couch!
With interest rates at record lows, it could be worth using your time in lockdown to review your existing home loan and refinance for a better deal. You could save serious money on both repayments and fees as a result.
Matt Jenkins, Head of Member Acquisition and Onboarding at BankVic, recommends booking a phone or online appointment with a lending specialist to discover which features can save you the most money over the course of your loan.
“There is so much uncertainty in the world right now, with many simple decisions beyond our control. Making sure you have the home loan that works best for you is absolutely something people can take control of,” Matthew says.
A small cut can mean big savings
Depending on when you took out your home loan, there's every chance you are paying higher interest than you need to. Even a small cut to your interest rate can provide big annual savings and reduce the financial pressure you're under every month. BankVic's home loan comparison calculator can help you compare your repayments against a new loan rate. For example, on a typical home loan of $400,000 even a small reduction in interest rates can save you hundreds of dollars a month in repayments and tens of thousands over the course of your loan.
Meeting refinancing criteria
During COVID-19, borrowers with steady jobs are well placed to refinance their home loan and secure a better deal. "If you are in secure employment and have built up some equity in your property, right now is an excellent time to refinance,” says Matt.
If you're a police officer, health industry worker or emergency or public services employee, for example, it could offer great value to refinance now.
Look at the whole picture
It's not just the interest rate that can impact the cost of your home loan. When weighing up the benefits of refinancing, Matt advises home owners to look at any fees and features attached to home loan products, including the service levels offered by the lender.
"Consider what features you want in your next home loan. For example, will an offset account or flexible repayment schedules save you money on repayments? Do you want to speak with your lender whenever you need to, or are you happy to rely on automated chat facilities online?"
“When unexpected circumstances hit - like COVID-19 for example - it's comforting to have a point of contact. If you want high-quality service and a competitive rate, BankVic has a really good product.”
Talk to a lender
Despite social distancing measures, the door to refinancing is still wide open. BankVic is offering phone and video calls both within and outside office hours to help you understand your refinancing options.
Whether you are refinancing or buying a home, BankVic currently has a special low-interest home loan offer with no ongoing fees.* Find out more at: bankvic.com.au/home-buying