WHY SHOULD I GET A FREE LOAN HEALTH CHECK?

Over the last 30 years we have seen interest rates rise and fall on many occasions.  Historically, lenders followed each other, so the differences between lenders really boiled down to service and relationship.  However, in the last round of interest rates movements, (6 in the last 8 months), this has not been the case.  We have seen banks increase their rates independently of the Reserve Bank movements.  So now, more than ever before, it is important for your own peace of mind for you to check up on your bank to make sure you have the best deal. 

You can do this a couple of ways.  Run around yourself to every lender in town, sit down and try to work out how each loan compares from each lender and then decide if it is worth moving or not.  Works well if you have a week or so!  The alternative is to get in touch with Aussie Capalaba and let us use our unique software to compare all of the major lenders for you to see who has the best deals and help you to work out a solution for your specific needs.  This is a no obligation, FREE service that takes approx 1 hour.

Here are some examples of what you may find, (based on interest rates and loan terms and conditions as at 23/7/2010.)

You have a loan of $350,000 on standard variable rate.  Refinance this to a basic variable rate and save almost $2000pa in repayments to the loan – yes that is almost $60,000 over the life of the loan.  Now the interesting bit!  If you refinance to the basic loan and keep your original repayments, you can save over $5000pa in interest cost over the life of the loan – that’s over $150,000!!

So, your loan is on a professional package.  The same equation might apply using the average package discount.  Take the cheaper option, and save up to $2000pa in interest cost if you maintain the higher repayment level – and you stop paying the annoying annual fee as well!!

Loan type to loan type comparison is only one reason for a free health check.  If you have other personal finance, car loans, home loans etc, the option to debt consolidate and then maintain the same repayment level to the cheaper rate loan also has the real potential to provide significant savings to you.

Finally, a free financial health check will also allow you to plan.  It can give you options in terms of your borrowing capacity.  You can determine the amount of equity you can release to allow for future investment opportunities and you can obtain the peace of mind a pre approval for that next investment purchase can give to you.

Mention this article to us at Aussie Capalaba and we will donate $50 from every settled deal to Tracie Harrington’s charity of choice, ACT for Kids (www.actforkids.com.au).

 

Andrew Ward

Principal Aussie Capalaba

ph 07 3245 1330 

aussie.com.au/capalaba

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