The current inflation is hitting everything, and the numerous cash rate hikes since May of 2022 are doing a number on the finances of most homeowners who are paying off their mortgages. Lenders are raising the interest rates on their variable loans, and those with a fixed-rate mortgage who are temporarily immune to the rising interest rates are faced with the dilemma of dealing with the ‘revert rate’ once their period ends.
How does that compare to interest rates from just a few years ago? According to a report by the Australian Competition and Consumer Commission (ACCC) released in September 2020, a homeowner with a mortgage between 3 and 5-years old would be paying about 58 basis points more on average than a new borrower. For mortgages that are more than 5-years old, borrowers are paying around 71 basis points more. This shows that Australian homeowners could be missing out on substantial savings by not refinancing. To find out exactly how much you could save by refinancing, talk to a Gold Coast broker today.