When two Manly school teachers were looking for a home loan, they thought the choice was obvious.
They secured finance through the same community-owned bank most of their colleagues used, bought a house and were happily paying it off.
A few years on, and knowing that their interest rate was a little higher than others they had seen advertised, they visited the mortgage broking experts at Peer Wealth for a home loan health check. The clients were members of a mutual bank they thought they were being looked after and thought they were on quite a good deal. This wasn’t the case though. Although they had always received good service from the lender they had been with for nine years, they were on an unnecessarily high rate that was costing them both money and years on their loan.
We ended up accessing a significant reduction in their interest rate. The client’s needs were to pay their loan off as soon as possible, so they continued to make the same repayments, to reduce their loan faster. Being able to reduce the debt significantly sooner than they originally planned means that the couple is now working towards purchasing an investment property.
This is a typical family arrangement, where many of the people we talk to thought they were on a reasonable deal. It wasn’t until they came to Peer Wealth for a home loan health check that we were able to show them that there were significant savings to be had by looking at an alternate lender.