My client purchased a house in Bentley Park back in 2012 for $277,920 and at the time he borrowed $250,000 or 89% of the valuation. Yes, he wasn’t happy about the Loan Mortgage Insurance and most people aren’t, but it’s a one off cost and it helps you to borrow more than 80% of the purchase price.
What’s worse than paying the Loan Mortgage Insurance is fact that the lender charged a higher than normal interest rate because the loan was greater than 80% of the purchase price.
Although this was the best option available at that stage, fast forward 6 years and the client has reduced the loan to $210,000. So even if the valuation was to remain the same, my client can refinance to a much cheaper rate.
Current interest rate is 4.59% I have asked his existing Lender to reduce his interest rate to match a rate from another lender at 3.69%. My client will save approximately $29,910 over the remaining 24 years by his existing lender reducing the rate to mate or moving to the new lender.
Maybe it’s time you had me look at your loan and see if I can get you a better deal!
Loan Broker to the Aussie Battlers