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#Everyone Needs A Plan to Ensure They Are Getting the Best Home Loan Deal!
Posted by Dean McKinnon
on 12 May 2015
 "#Everyone Needs A Plan to Ensure They Are Getting the Best Home Loan Deal!")
Do you know how the recent RBA reduction in interest rates may affect your mortgage repayments?
Most online mortgage repayment calculators only provide details of your loan repayments based on your loan amount and the term of the loan, and not necessarily how much you will save on your mortgage repayment each month.
The following table provides a brief overview of the monthly savings based on the 0.25% cash rate reduction from Tuesday, 5 May 2015.
| LOAN AMOUNT | MONTHLY REPAYMENTS | ||
|---|---|---|---|
| BEFORE RATE DECREASE | AFTER RATE DECREASE | REPAYMENT REDUCTION | |
| $100,000 | $506.69 | $491.94 | $14.75 |
| $125,000 | $633.36 | $614.92 | $18.44 |
| $150,000 | $760.03 | $737.91 | $22.12 |
| $175,000 | $886.70 | $860.89 | $25.81 |
| $200,000 | $1,013.37 | $983.88 | $29.49 |
| $225,000 | $1,140.04 | $1,106.86 | $33.18 |
| $250,000 | $1,266.71 | $1,229.85 | $36.86 |
| $275,000 | $1,393.38 | $1,352.83 | $40.55 |
| $300,000 | $1,520.06 | $1,475.82 | $44.24 |
| $325,000 | $1,646.73 | $1,598.80 | $47.93 |
| $350,000 | $1,773.40 | $1,721.79 | $51.61 |
| $375,000 | $1,900.07 | $1,844.77 | $55.30 |
| $400,000 | $2,026.74 | $1,967.76 | $58.98 |
| $425,000 | $2,153.41 | $2,090.74 | $62.67 |
| $450,000 | $2,280.08 | $2,213.73 | $66.35 |
| $475,000 | $2,406.76 | $2,336.71 | $70.05 |
| $500,000 | $2,533.43 | $2,459.70 | $73.73 |
Points to Consider & Note:
- Not all banks will pass on the full 0.25% reduction in the cash rate to their home loans.
- The loan examples have been structured on a 30 year loan term, with a variable principal and interest monthly repayment structure, using annual interest rate of 4.5% before the reduction, and 4.25% after the reduction.
- The interest rates and loan terms are intended as a guide only and you would need to check with your mortgage lender as to exactly what your interest rate is, and how much your mortgage lender will be reducing your mortgage rate by.
- All calculations in the above table are intended for insight purposes only, and are not guaranteed.
- If your home loan repayment is fixed, you will not have any change to your interest rate.
If you would like a free assessment of your mortgage loan, to make sure you are getting the best deal, please feel free to Contact us and arrange an appointment - because everybody needs a plan to ensure they're getting the best deal on their home loan!
Author:Dean McKinnon
| Tags:Mortgages and Finance |
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