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For a copy of the Gallery Magazine rate card and media kit, please contact Alan Phillips at the Home Option Gallery on 02 8860 9333.

Find a better loan with RBA rate increase

Chairman of Aussie Home Loans, Mr John Symond, has called for borrowers to look for a better loan deal for themselves, following the Reserve Bank’s decision to lift official interest rates.

Mr Symond suggested home owners and credit card holders should investigate their own financial situation and seek to offset the hike in the interest rates, which will hit their mortgages and other loans.

He said, “Our research shows that more than 50 per cent of customers who speak to an Aussie adviser do not have the best home loan deal. The rate rise should prompt all borrowers to find a better deal, which could negate the latest rise altogether”.

Mr John SymondMr Symond added that Aussie’s research showed that home owners who refinance through the mortgage broker generally save up to 0.75 per cent on the standard variable rate, which could amount to tens of thousands of dollars over the life of the mortgage.

Mr Symond added, “Credit card holders should also be looking to investigate whether they can get a better deal as many cards, particularly store cards, have interest rates now well over 20 per cent and the costs associated with them will rise”.

A robust property market, relatively stable unemployment figures and a sense of renewed confidence, means that Australians are well-placed to set themselves up for future prosperity.

“Australia has been resilient in the face of the global economic crisis and emerged as a strong, stable economic nation,” Mr Symond said.

“While the RBA may further lift the official interest rate to control any inflationary pressures, I believe we still have at least six to nine months of low rates,” Mr Symond said.

As one of the country’s largest non-bank providers of financial services, Aussie has a loan book of over $33 billion. With the acquisition of Wizard, there are now over 140 retail shops and 800 brokers across the country ready to help customers get a better deal on their finances.

According to Aussie, some initiatives you should consider
in paying off your mortgage include:

  • Don’t over-borrow at the outset as the low rates won’t last forever. Factor in at least a 2-3 per cent increase over the next two years and make sure you can still make the repayments at that level.

  • Seek fortnightly repayments, not monthly, so the interest repayments work faster to reduce the mortgage.

  • An extra $20 in repayments each fortnight can save thousands of dollars in interest savings.

  • Lump sum payments (even small ones) into a loan can make a substantial difference, reducing the overall loan term and amount.

  • Start an offset account where savings accounts can be linked to the home loan and give up paying fees or any ongoing charges.

  • Research has shown that customers are financially better off over time with a variable rate. However, a fixed rate can be an effective way home owners can keep their repayments at the same level and effectively manage their risk. Fixing part of a mortgage while keeping the remainder variable can be a good each-way bet.

For more information call Home Option Gallery aussie logo
on (02) 8860 9333 or see Home Loans and finance.