Recently we helped Ricky and Jasmine save $288 per month on their home loan, which helped them afford to buy a new car! All this by simply having a chat and looking at their options.
Posted in: Insights
Ricky and Jasmine bought their first home 3 years ago. At the time they chose to split their loan with a 3 year fixed rate at 4.09% and a variable rate at 4.05% (principle & interest). Being first home-buyers, they had a high loan to value ratio therefore were limited in their options at the time.
Their current lender had reduced their variable rate down to 3.29% over the years but were unwilling to go much lower, unless they borrowed ‘new money’. They were currently paying $1,799 per month and really just wanted to free up some cash in their budget to buy a new car.
Ricky and Jasmine chose to chat to Bernie Lewis Home Loans about their options leading up to the expiry of their fixed rate. When Ricky and Jasmine sat down with our Mortgage Broker, they discussed their short- and long-term goals, about how their home loans had been working for them, and their lifestyle. They decided they actually liked the flexibility of their split loans and preferred to continue with the structure, a decision which was consolidated by the advice received from our Mortgage Broker at their initial consultation.
Armed with a large range of options, our Mortgage Broker found them more competitive home loan products that ticked all the boxes, and that they could actually qualify for. They opted for a variable rate at 2.54%, and a 2-year fixed rate at 2.19% (principle & interest). The new products came with most of the same features they had previously, and some more functional ones. The new combined monthly repayment would be just $1,450. After a comparison against their current interest rates, and looking at the fees associated with refinancing elsewhere, it was established that we could save them $288 per month across the first year, and over $7,000 in total over the new 2-year fixed period. They also received a bonus cash back of $2,500 from their new lender.
The extra $288 per month in their 12-month budget was a great place to start looking at what new cars they could realistically afford. Ricky and Jasmine decided to give their Mortgage Broker a call to see if they could help with a car loan and to figure out their price range. They needed finance to quickly jump on a special deal, and still had the $2,500 cash back from refinancing in their account to use. Our Mortgage Broker had them approved in just 6 hours, with their new car picked up by close of business the next day.
All this was achieved simply by sitting down with one of our Mortgage Brokers for 30 minutes to look at what options are out there, and if they can actually work out for the better.
If you’re looking to get a better deal and save each month, give your Mortgage Broker a call or call us on 8300 8300 and we’ll show you what’s possible.
*The information provided in this article is general in nature and does not take into account your personal circumstances. Since everyone's personal situation is different, this article should not be taken as advice.