The latest cash rate decrease to a record low of 1.75 per cent last week has seen both variable and three-year fixed rate deals on owner occupier loans plummet below the four per cent mark.
What does this mean for you? There are three key areas that you should consider:
Have you recently reviewed your debt position?
Are you confident your debt is structured in the most tax effective way?
Are you confident your rate is competitive with the recent movements?
When a homeowner is paying too much to the banks, we call it the Lazy Tax. If you think you could be paying the Lazy Tax, then consider this.
A 1% reduction on a $400,000 home loan would equate to around $4,000 per year on wasted money.
The main reason why homeowners don’t refinance was the belief that they wouldn’t get a better deal.
Peer Wealth offers a free review on your debt position, to see if we can help.