In a market of steadily increasing interest rates, there has never been a more important time to review your current home or investment loan.
At the time of taking out the loan for the purchase or refinance of your property, it is true to say that you would have been offered the best rate and product in the market by your bank or broker, but over time things can change. Rates can steadily creep up as there is a difference between ‘acquisition deals’ for the lenders to gain customers and improve market share, and what existing customers of a bank or lender are paying in interest. This means that sometimes new customers can be offered a better rate or product while existing customers can end up paying more.
This is especially true if you had taken out an introductory rate for one or two years, where your rate was cheaper but only for a period of time. When this period lapses the rates revert to a much higher rate than the leading variable rates. Similarly, with fixed rate lending, where an interest rate is a fixed amount for a defined period of 1 to 5 years. When this period ends the rates revert straight across to the standard variable rate without a discount. This is a very important time to be reviewing your loan as the standard variable rate can be up to 2.0% higher than a discounted standard variable rate.
Shakespeare Leasing & Mortgages can help by assisting you with a loan review and comparison between what you’re currently paying and what is available in the market.
Feel free to get in touch with our office on 08 9321 2111 or email lending@shakes.com.au and we can outline the process and see how we can assist.
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