Refinance Home Loan Discussion

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  oscargamer on 26/02/2017 - 20:23

  +1

  pretty good rate at the moment

  can't see much reason to change what you are on……

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  samuraiOz on 26/02/2017 - 20:49

  Thanks. Have you heard of Bank Australia ?.. very interesting and low interest rates .. 2 years fixed 3.69%

  • 

    djkelly69 on 26/02/2017 - 21:01

    +1

    Not a huge difference to what you have now. Presumably there will be quite a range of fees payable to refinance to them, so that will eat into the saving pretty quickly.

  • 

    stratbargain on 26/02/2017 - 21:13

    I can't see the 3.69% but they do have a 3.74% for 2 years fixed which has a comparison rate of 4.26%!! So make sure you're comparing apples with apples.

    • 

      [Deactivated] on 27/02/2017 - 11:22

      Hi SamuraiOz, we work with Bank Australia a lot and the feedback from our clients is generally excellent. They've been pretty busy lately because of their sharp pricing, so processing isn't as fast as it usually is, however. That said, if you can handle a few delays with approval, you ought to be happy with their service once settled vis a vis they have some great tech such as Apple & Android pay, a real community focus and a solid customer service team.

      With respect to comparison rates on fixed products, bear in mind that (generally speaking) they're usually close to being useless. They often factor in a 'revert rate'. This is the rate that the product reverts to once the fixed rate has expired (often a standard variable). So if the product is a 2 year fixed it uses the fixed price, then 23 years of a standard variable product price which you are nearly certain not to use. Why? The fact is that it is usually cheap (or free) to switch to a professional discount or re-fix. Also, bear in mind that at $650k, a comparison rate will dramatically overstate the relative importance of fees & charges as it is based on $150k over 25 years (whereas your loan is 4 times that size and will likely have an approved term of 30 years).

      If you were interested in that Bank Australia product please feel free to drop us a PM as we have a promo at present where you'd receive a $1000 eGift card at loan settlement and that sharp rate. Unfortunately we can't post a link here as it is against rep policy.

      Hope this helps.

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  poboy on 26/02/2017 - 21:14

  Banks are not in the business of losing money. They know more than you and price their fixed rates accordingly.

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  samuraiOz on 26/02/2017 - 21:21

  Thanks for all your suggestions. Interesting comments, I will have to reassess again.

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  djkelly69 on 26/02/2017 - 22:05

  Have you spoken with your current bank? They should be able to do a split loan, and should be less fees involved that way.