We all know we should go to the dentist twice a year. As we get older, we even accept we need to have regular cancer checks.
So why is it that so many Australians fail to check whether they are paying too much on their loan?
According to finder.com.au only six per cent of borrowers are considering changing lender. Incredibly, by not switching loans or asking for a discount, households are wasting up to $27.4m per month!
Ironically, this apathy takes place in an environment when the banks are encouraging Australians to shop around for the best deal. Some lenders are offering as much as $1,500 to change lenders.
A few months ago, the banks were only competing with each other for owner-occupied loans. But this week, a Big Four bank offered $1,500 to encourage investors to transfer their investment loans.
Now, more than ever, there is a need to make sure you are not wasting money. It is looking increasingly likely that both major parties will go to the next federal election with proposals to reduce negative gearing; where once investors could rely on the tax office to reduce their outgoings, now they could be facing higher loan repayments.
Imagine how worse off you would be if:
- Your interest rate was too high; and
- You were getting a smaller tax refund every year
If you would like me to give your home loan a health check, please contact me on 1300 30 67 67