Brick Road Beverly Hills believes that there are vast savings to be had by
refinancing and as your local mortgage broker, we are here to help. Yellow
Brick Road reviewed the situation of 1,000 Australians who obtained a home loan
more than two years ago and these were their findings:
- 40 per cent of those surveyed said they had
- 19 per cent hadn’t refinanced in over five years
- 6 per cent had refinanced four to five years ago
- 8 per cent had refinanced three to four years
ago and 10 per cent had refinanced between two to three years ago.
statistics show us the opportunity for money to be saved by the people around
Beverly Hills in South Sydney.
Mark Bouris, Executive Chairman of Yellow Brick Road said
that he found it hard to believe that so many people were avoiding action, particularly in light of the big
banks continuously raising interest rates outside changes by the Reserve Bank.
“It’s outrageous to think people are still paying high
interest despite the opportunity to pay less. In effect you’re just handing the
banks extra money. Many people take the time to drive to the cheaper grocery
store just so they don’t pay an extra dollar for milk, yet when it comes to
home loans they stick their head in the sand,” Mark said.
According to recent analysis the average discount applied to
new mortgages has steadily increased in recent years. A household who took a
loan out in 2010 when the average discount was around 20 basis points would
today have access to discounts in the range of 90 basis points or .9%. As a mortgage broker, we spend
our days working with mortgage products and are across all of the discounts on
offer in the market, some of which are not advertised online.
Mark said that even allowing for potential fees and transfer
costs, it is likely that those on a home loan secured a number of years ago
will be able to save each month by refinancing.
“For those who took out a home loan five years ago, the
average rate after reductions would be 5.3 per cent. The potential savings on
an average $350,000 loan with 25 years remaining could be thousands. For
example, if you refinanced to a rate of 4.8 per cent, you would save $30,660 in
interest over the remaining life of your loan. There are also many lenders
offering very competitive rates as low as 4.1 to 4.2 per cent, if you do your
research then you may find your savings could be significantly more,” he said.
Why aren’t people refinancing?
- Not believing enough money would be saved in the
process (31 per cent)
- Thinking the fees and charges would outweigh the
benefits (29 per cent)
- And perceiving the process as too much of a
hassle (18 per cent).
local Yellow Brick Road broker in Beverly Hills, we can show you that the
savings can be huge and easily outweigh any small fees incurred in the process.
If searching online for the cheapest rates is confusing, we can do it for you
and often times as a mortgage broker we have access to deals that are not
“With interest rates dropping to a low that no one in my
generation would have thought possible, it’s crazy to not find out if you can
save. If you don’t have the time, the latest knowledge or the expertise – don’t
feel overwhelmed. There are people out there to help you. Go speak to a
mortgage broker and they will do the work for you. Now is the time to take to
do your research and take action,” Mark said.
Who is most at risk of not
More young adults had refinanced recently – 28 per cent
of the 25-34 year olds refinanced in the past two years. This followed with 22
per cent of 35-44 year olds, 13 per cent of 45-54 year olds, 11 per cent of
55-64 year olds and 10 per cent of those aged 65 or older.
have consistently found that both young adults and older people can all benefit
from refinancing their mortgage.
Mark said that for anyone who hadn’t refinanced in the past
several years this is their wake up call to go out and at least ask the
question about potential savings.
“Costs are high these days. And it makes me angry that banks
are profiting from money that should be in the consumers’ hands. At Yellow
Brick Road, we are striving to educate Australians to empower them to find a
better deal. At a time where rates are the lowest in history, everyone should
be out there speaking to their lender and mortgage broker about what they can
do to save,” he said.
haven’t looked at refinancing lately, come and see our team in Beverly Hills to
see just how much you could save by switching to the best mortgage for your