You may already know but if you don’t pay attention…
The video below which was on 7NEWS a few weeks back reveals a loophole in the Australian home loan market that could potentially save borrowers thousands of dollars in repayments.
In summarising the video the loophole is related to the way banks calculate the interest rate on home loans:
- The banks have previously used a higher interest rate to calculate repayments than the actual interest rate on the loan which helps safeguard them and the borrower from rate rises.
- By negotiating with the bank to use the actual interest rate to calculate repayments, borrowers can potentially save thousands of dollars in repayments.
To ensure you can manage your repayments to best suit your current situation we recommend that borrowers speak to their bank or a mortgage broker to see if they are eligible for the loophole. Feel free to reach out to me or one of the very experienced brokers in the IM Team if you need further help or clarity on this or any other lending issue.
This article was written by Nicole Monks, Mortgage Consultant with Inspired Money, and provides general information that should not be considered personalised financial advice. If you have specific questions or concerns book a session to review your current mortgage situation or any other lending issue contact Nicole directly on 08 6222 7909 or book a meeting now via his booking page.
