The Reserve Bank of Australia’s recent decision to freeze interest rates not only bodes well for the real estate market, but also for homeowners looking to refinance their properties, reports realestate.com.au.
According to RateCity, this decision may encouragement some homeowners to get a better deal on their home loans, with fixed rates advertised at 3.99 per cent.
Australian Bureau of Statistics data shows that the number of owner-occupiers who refinanced their properties increased by 17 per cent to $27 billion in the first half of the 2013-14 financial year.
“Borrowers are no longer waiting around for the Reserve Bank to give them a rate cut,” RateCity CEO Alex Parsons said in an interview. “Instead, they are taking the bull by the horns and getting a discount for themselves.”
Unbeknownst to many, even the smallest of cuts can make a big difference to mortgage repayments. Over a 25-year period, a cut of just 1 per cent can save almost $50,000 on the average $300,000 loan.
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