Can You Save By Refinancing?
Can you save by refinancing?
If you have a CBA standard variable loan the rate has just increased to 7.81% plus on going fees means the comparison rate (real cost) is 7.94%.
Payment on a loan of $249,000 is $1802 per mth. (including $8 mth fee)
As an example compare to Plan Lending, loan rate currently 6.55%, no application* or ongoing fees, comparison rate of 6.55%.
$249,000 loan $1582 mth payment ($2640 per year savings, or $79,200 over 30 yrs) What if you paid the saved $2640 into your loan and paid fortnightly, the loan would be paid in approx 18.5 yrs with an additional saving.
Alternatively M+ currently has a loan rate of 7.09 % comparison rate of 7.15%, $1671 per mth, a saving of $131 per mth. In Addition M+ has great discounts on petrol and Health funds. Eg. Petrol discount for a loan of $249,000 would be .25c on 332 lt. of petrol per month ($996 per year for the life of the loan) Total annual savings $2568 pa. Health fund saving will depend on your individual circumstances.
These comparisons of course are based on current rates and do not replace a crystal ball, but in my opinion,
Yes you can save by refinancing!
* the no application fee is a limited time special.