As widely reported in the media recently, up to 800,000 fixed loan contracts are expected to end this year with many homeowners having previously locked in a low interest rate for as long as they could. With interest rates now on the rise, this means once the loan switches from a fixed rate to a variable rate they are likely to be hit with a significant increase in their mortgage repayments.
If you are one of these mortgage holders, which represents a whopping $370 billion worth of loans, you might be ready to refinance your loan to ensure you have the best interest rate possible.
Growth Point Capital Residential Broker, Dan Hynd, said he recently assisted a client with a $1m mortgage change to another lender after they were looking at having a 6% interest rate on their mortgage when their fixed term ended.
“The client was initially hesitant to switch lenders, seeing it as an unnecessary hassle but after I found them a major bank that offered an interest rate of 4.75% along with $3,000 cashback, they decided it was well worth it.”
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