Ever wondered why some people get better interest rate deals than others? Perhaps you’ve had a chat at a barbecue and discovered your host is paying a lesser rate than you?
This could be the reason…
Lenders reward borrowers who hold more equity in their property. A lower rate will be offered if you have 70% equity compared to 20%. Why? Because it reduces their lending risk and the related saving can be passed onto the borrower.
This also means that as you build up equity in your property, your lender could be more amenable to negotiating a lower rate.
Is your home loan still right for you?
Find out more about what to consider when it comes to refinancing. Download our Refinance Guide.
Katrina (Kate) Beaumont and Blueprint Planning Pty Ltd (ABN 78 097 264 554), trading as Blueprint Wealth are authorised representatives and credit representatives of AMP Financial Planning Pty Limited ABN 89 051 208 327, Australian Financial Services Licensee and Australian Credit Licensee 232706.
This article contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information.
www.ratecity.com.au Using your home equity to refinance