In such a competitive market, it pays to use a mortgage broker who will spend the time to find you the most competitive loan product as well as interest rate. With so many loan products on offer, it’s sometimes hard to know which product will benefit you most. We recently assisted a client who had an owner-occupied property with minimal debt and a low interest rate, which was great.
However, they also owned two investment properties, with both of these investment loans having a considerably higher interest rate. We took the time to review each of the property values and current loans and realised that we were able to utilise the equity in their current owner-occupied property to help them reduce both of their investment home loan interest rates.
The reduced interest cost on both investment home loans meant our client would save thousands of dollars every year. We also assisted our client in putting together a plan to help them reduce the debt on the owner-occupied loan. By using the savings in interest on the investment loans to make additional repayments to their owner-occupied home loan, they will be able to pay off a further 50% off the balance of the owner-occupied loan over the next 5 years, bringing our client even closer to their goal of early retirement.
If you or someone you know would like to review their interest rate to ensure it is competitive in the current market, get in touch today.