Many people assume switching to a lender with a better rate will automatically save them money but this isn’t always the case. Using an online calculator will soon let you know if there are real savings to be made.
Moneysmart.gov.au has an online ‘mortgage switching calculator’ which will, in a few simple steps, give you an indication if there’s money to be saved by moving to another lender. Simply type in the details of your current loan, including amount, time left to pay, ongoing fees and interest rate and the same information for any new loan you are considering. You will then be presented with a graph detailing how long it will take to pay off your loan, how long to recoup the costs of refinancing and what will be your new monthly repayment.
For more information, visit Moneysmart.gov.au