Thinking about refinancing? Here’s how much you could save right now
Why pay more than you need to for a home loan? Refinancing may help reduce your expenses.
Sponsored by Bankwest. If you're thinking about refinancing, Bankwest can help. Learn more about our variable rates and loan features today.
Refinancing has been at record highs as interest rates have crept higher and higher – but a huge number of Australians are still paying above and beyond for their home loans.
With interest rate uncertainty and the cost of living rising, in many ways there's never been a better – or more important – time to refinance.
According to figures from the Reserve Bank of Australia (RBA) the average interest rate for outstanding owner occupier home loans was 5.09% in October. Adding on the last 2 rate rises or even a third rate rise in April , we can assume that figure has grown to in excess of 5.84%.
Assuming a $500.000 home loan over 30 years, refinancing to Bankwest Home Loan could save you around $2088 annually1.
Wondering how your home loan compares? You can get an idea of the interest and time you could save by switching to Bankwest by checking their refinance calculator.
Of course, refinancing isn't purely about the rate, either. These are some of the other ways to save money over the course of your home loan.
1. Offset accounts can reduce the interest rate you pay
When looking for a new home loan, finding one with an offset account could be a really good move to save you money.
An offset account is an account attached to your home loan. Any money you put in this account works like you've reduced the balance of the loan, which reduces the interest you pay.
Unlike if you were to simply make additional repayments towards your loan, you use the offset account like any bank account where you can withdraw or spend your money at any time.
All Bankwest Home Loans have the ability to add an offset account.
2. Support can save you time
Your time is important and you shouldn't be spending hours on the phone trying to speak to someone. Find a bank that has great customer support so that you can talk to someone quickly and at any time that's best for you.
You can book an appointment with a Bankwest Home Lender online on their website. Existing customers can save time and hassle by messaging Home Loan questions in the Bankwest App or by online banking.
There's no need to hang around and wait for a reply, either. You'll receive a notification when the team has replied.
3. Switching to a loan with no fees lowers the comparison rate
The home loan you're currently on may have charges like ongoing fees, redraw fees or charges for an offset account.
These fees can bring up your monthly repayments, but not all loans include them. Take a look at banks that don't charge ongoing fees. Looking at the comparison rate of a loan gives you a clearer picture of the true rate you'll be paying each month.
When looking at refinancing, choose a bank like Bankwest, which doesn't have ongoing fees on its Bankwest Simple Home loan. This way, all the money you're paying goes towards paying off the loan.
Learn more about Bankwest Home Loans
Image: @Hero Images Inc via Canva.com
1. Based on Bankwest Simple Home Loan comparison rate of 5.34 as of 30.02.23.
2. Eligibility criteria, fees and T&Cs apply
This article has been sponsored by Bankwest, a division of Commonwealth Bank of Australia (Bankwest) ABN 48 123 123 124 AFSL / Australian credit licence 234945.