Fixed Vs. Variable?

The question of the hour when looking to Refinance your Mortgage.

As many Australians are heavily focused on reducing household costs right now and saving on interest repayments per month, looking to Refinance your loan to get a better deal is a great place to start.

At AMB we are saving clients on average $450 per month* at present with a Refinance and over 1% off their existing rate*.

We do this by restructuring your existing Loan and depending on the amount of debt you have we are fixing a larger portion of the debt in and then keeping a smaller portion of the debt Variable. I call this the best of both worlds.

The benefit of splitting your debt at present is you are securing the larger portion at a lower rate as interest rates have never been so low. Fixed rates are sitting at approx. 2.19% PI for an owner occupied for a term of 1,2,3 years depending on the offer and bank. This will help with budgeting and if rates do increase which they will eventually, you have this portion secured in for the specific time frame you lock it away for.

By keeping the smaller portion variable, you are then utilising an offset account and redraw within the loan itself. Variable rates are sitting at approx. 2.64% PI. With Variable debts you can also pay as much as you want off the debt with no penalties incurred so any extra cash you have each month you can be paying off the loan and reducing your loan balance down by that amount each month.

Since Covid-19 hit our shores, the number of client's refinancing their mortgage has spiked as cash has never been so cheap! There is some big savings now available and engaging with a qualified Mortgage Broker who can assist in educating you around finding the best deal to suit your needs can save you hundreds per month, thousands per year and reduce the life of the loan by years.

The big banks might be easy targets when it comes to offering better value, but rival lenders are also winning customers over with more efficient approval processes and fast online applications.

*Savings, structures, and rates will change depending on your financial situation, but the point is taking up a free review with a qualified mortgage broker today will determine how much savings there are to be made.

So, if you are over no support, high interest rates and hidden fees, make sure you give us a call for an obligation free review today!

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