Maximising Savings: A Guide to Getting an Interest Rate Review on Your Home Loan with Vision
If you’re a homeowner and are paying off your mortgage, you may be feeling the harsh effects of the significant number of interest rate rises in the last 12 months. In May 2022, the Reserve Bank of Australia (RBA) announced that they were lifting the cash rate from a historical low of 0.10% to 0.35%, which was their first rate increase since November 2010.
Since then, the RBA has announced 11 more rate rises, with the most recent announcement on Tuesday the 6th of June 2023. This has brought the cash rate to 4.10%. Consequently, interest rates on home loans have too increased, with Australian homeowners having to pay more for their mortgage each month. This is because interest rates play a pivotal role in determining one’s monthly repayments and overall cost of their mortgage.
We understand that rising interest rates induces financial uncertainty and impacts one’s household’s finances and budget. One effective way to navigate this process is by working closely with a mortgage broker from Vision. We have the ability to explore your situation and perform an interest rate review, empowering you to maximise your savings.
What is an interest rate review?
An interest rate review assesses your current interest rate with your home loan, and explores the possibility of renegotiating your mortgage terms with your home loan lender, or the possibility of refinancing.
The primary goal of an interest rate review is to lower your interest rate, ultimately reducing your monthly repayments and saving you more money in the long term. This can have a significant impact on your household budget and will place less stress on you financially.
What is involved in an interest rate review?
An interest rate review is a quick, yet comprehensive, assessment of your current home loan, and enables us to explore the possibility of obtaining a better interest rate. There are a few key components that are involved in an interest rate review, including:
- Loan Analysis: Vision’s team of experts review the terms and conditions of your existing loan, including the interest rate, remaining loan balance, loan term, and any fees associated with refinancing.
- Market Research: We then conduct research on current market conditions and interest rates. This involves analysing rates offered by various lenders and assessing market trends. Unlike banks, mortgage brokers have access to multiple lenders, enabling us to present you with a wide range of options that are suitable for your individual circumstances. This flexibility ensures that you have the opportunity to obtain the most favourable interest rate available.
- Comparison and Options: Based on the above assessments, we present you with an option that is most suitable for your situation. This may involve renegotiating the terms of your existing loan with your current lender. Alternatively, we may explore the possibility of refinancing your loan with a different lender, providing you with additional choice to optimise your savings.
What does this look like?
We recently conducted an interest rate review for a client with a mortgage of $535,000. By conducting this review, looking into their loan terms, and thoroughly assessing the market, by the next day we had already received a fantastic option available for them. We were able to gain a discount for this client, decreasing their interest rate on their home loan by a further 0.39%.
When comparing this client’s new rate with their old one, we have helped this client save $135.11 a month on their home loan. This has had a significant impact on the individual’s ability to achieve their financial goals, and ability to pay off their home loan quicker. In only a short amount of time, the process is smooth and efficient, and we can get the best results for our clients.
You can access our basic loan repayments calculator here.
Our team of expert mortgage brokers are also strong on communication. Throughout the interest rate review process, we serve as the liaison between the client and the lender, by providing regular updates, answering any questions, and ensuring that all elements are understood.
Maximise your savings with Vision
Working closely with a mortgage broker from Vision can be instrumental in maximising your savings through an interest rate review. Rising interest rates can place a burden on homeowners’ finances and household budgets, but with the expertise and guidance of Vision’s mortgage brokers, you can navigate this uncertainty effectively. The process is efficient and streamlined, with quick, positive results that can lead to significant savings over the long term.
Don’t let rising interest rates overwhelm you financially. By contacting Vision and leveraging our expertise, you can take control of your mortgage and maximise your savings. Contact us today to get started on securing a better interest rate for your home loan.
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