With interest rates at historical lows, now is the time to re-evaluate your current lending arrangements.
Our lending advisers have a wealth of knowledge, access to over 40 banks and lenders, daily rate updates and campaigns that are not advertised in the mainstream.
Finance Health check case study client - Paul
Let’s do the maths
Say you currently have a 28 year home loan of $400,000 at last year’s average of 4.34%, you’d currently be paying $2,059 in monthly repayments
Paul is paying off a $400k mortgage. He hadn't looked at his interest rate in a while and was shocked to learn that the rate has crept well above 4%. His current Home loan is a basic, no-frills variable loan without many extra features. When Paul contacted his Bank Manager he was disappointed to discover he was only able to achieve a small discount off his current Home loan rate. Upon further research he found that his bank was in fact advertising Home loans in the 2% range, he went back to his Bank Manager only to be told that those advertised rates he had seen were only for “acquisition”or “new client’s”.
As a consumer, your query of ‘Am I getting a fair deal?' is rightly justified. Importantly there is significant data to illustrate that the longer you stay with your bank, the greater the chance that your interest rate will be set higher than what that that same lender would charge for new business. In essence, this means your loyalty is penalised. In fact your bank relies on you not checking your home loan rate! How do you swing this back in your favour? You become that new client again!
However, if you were able to refinance that 28 year loan to another loan with a more competitive interest rate, like 2.49% (just one of our partnered lenders), your monthly repayments would sit at $1,654 instead.
That’s a $405 difference, every month!
***Remember we have had 5 historical rate decreases in the past 12 months! Did your bank pass on all 5 full rate cuts???
Partnering with a large number of banks and lenders in this highly competitive environment gives us the competitive edge to be able to source best market products to suit our clients ever changing needs. We helped Paul not only refinance his home loan to a much lower rate, we achieved a cash back offer from the new lender. We then assisted Paul in a strategy on how to he could use his new found monthly savings and cash back to reduce his total interest payable on his mortgage which in turn has shaved years off his mortgage.
From 1st home buyers to the sophisticated investor, we have the solution to your finance needs. At Prosperity, we let you know what your options are via an obligation free Finance Health check. This ensures you’re getting a deal that works for your individual circumstances, that is market leading and that is competitively priced.
If you would like all the frills of a private banker without the premium charges of one, chat to Matthew Guy on 1300 795 515.
