If you have a loan for your home or investment properties in Perth, you could be paying thousands of dollars too much in mortgage payments. You may have noticed the drop in interest rates as of late. Whenever rates go down, it’s because there is less demand and more supply for loans. In other words, the banks are competing for your business.
In addition, recent changes in the law have made it easier than ever to change banks. This not only makes it easier to find other banks to do business with, but it also makes banks go out of their way to retain the customers they already have. Often, if you notify your bank that you will be looking elsewhere, they will offer to renegotiate your mortgage and lower your interest rate to keep you as a client.
Consequently, your first move should be to do some quick research and find out who is offering better rates. Then, try ringing your bank’s “mortgage retention department” and tell them you are considering moving your mortgage to obtain a lower rate.
We all know that advice is cheap, but I actually did this last week, and received a 0.2% reduction on my mortgage, saving me $400 per month, or $4,800 per year.
Fixed interest rates are currently lower than the variable; this indicates that the finance sector is expecting further rate drops over the next two years. If you want to save even more money each month, you may consider fixing your mortgage rate, but you have to make sure you receive professional advice before doing this, due to possible long term effects on your future finance strategy.
So, pick up the phone and see what your bank can do for you. I made one phone call and made $4,800 profit over the next year. The old joke is, “great work if you can get it,” but you actually can get it, just with a few phone calls.I didn’t even need to sign any extra paperwork!
If you need a Free Sale Appraisal or property manager to take care of your Perth investment properties, call 1300 472 427 today. We specialise in investment properties, and offer Perth’s best one-stop shopping for property investors.