Roast My Rate: We’ll tell you if your home loan rate is too high in 10 seconds
Key takeaways
- The average owner-occupied principal and interest home loan rate is 6.2%, but rates below 6% are up for grabs, which can help shave thousands of dollars off your home loan.
- A 0.50% difference can add up to more than $58,000 over the life of a $500,000 loan.
- What's next: Check out Finder's new Roast My Rate tool and find out how your rate stacks up against the market.
Most of us know the price of our daily coffee better than the rate on our mortgage.
We think it's time for that to change.
Right now, the average owner-occupied principal and interest home loan rate is 6.2%. But some of the lowest variable rates in Finder's database sit below 6%.
That's a notable gap that highlights what a typical borrower is paying and what's available to those willing to shop around.
Why it's time to bridge the gap and refinance
To put those numbers into perspective, let's run a quick example.
Finder's figures show that on a $500,000 loan over 30 years, a difference of just 0.50% in your interest rate adds up to more than $58,000 over the life of the loan.
Unfortunately, most people don't know they're in "the gap" at all.
Most of the time, Aussies initially take out a sharp deal on their mortgage only for that offer to become dull over time.
The good news is, there is now an easy way for homeowners to put their rate to the test.
Roast My Rate: find out where you stand in 10 seconds
To make the check painless (and a little fun), Finder created Roast My Rate.
All you need to do is tell us your loan details, including your interest rate, and we'll give it a ranking. We'll also tell you how big of a "gap" you're paying compared to the lowest ongoing rate in our database.
And don't worry, we've given you the choice to choose how brutal you want the feedback to be, from a gentle nudge to a full "you asked for it" roast.
What to do if your rate gets "roasted"
If Finder's Roast My Rate tool spits out a less than desirable rating, there are a few things you can do
- First, call your current lender and ask for a better rate. Sometimes the threat of leaving is enough to unlock a discount, especially if you mention a sharper offer elsewhere.
- If negotiating with your lender is unsuccessful, compare refinancing home loans to view current offers on the market. Our data found that the average Aussie could save as much as $7,068 a year by refinancing.
- Once you find an option you like the look of, start the process of refinancing to a lower interest rate.
Ready to surrender your rate to Roast My Rate? Punch in your number and get the diagnosis today.
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