It's truly amazing how much you can save by doing a simple mortgage review, but here at Simpler we are pretty confident that we can save you more than you would just getting a ‘simple mortgage review’. Gone are the days of fixing your mortgage and forgetting about it, we will actively manage your mortgage for you, and if there's a better deal out there for you, bet your bottom dollar we’ll find it for you.
We have created a system called mortgage match which takes a simple refinance to the next level in order to maximise our clients savings.
When you take out a fixed rate mortgage, you commit to that interest rate for a period of time right? Well yes and no.Most people know you can break this fixed interest rate term, but may have to pay a penalty fee.What most people don’t know is that under the Credit Contracts and Consumer Finance Regulations 2004 that govern the terms in your mortgage contract, lenders are not allowed to profit from you breaking your fixed interest rate early. They can only recover losses they incur, and there is a specified ‘Safe Harbour’ formula in the regulations for calculating this loss.
Quite often the bank actually makes a profit from you breaking your fixed rate early, and so can you. If the interest rate that the bank offers for the term that most closely matches the remaining term on your fixed rate is higher than your current fixed rate, the lender makes a profit.
We can quickly calculate your interest savings and best interest rates on home loans.
When you come to us for a refinance, we use a 3 step process; refinance→restructure→mortgage match. We have put together an example of the savings to be made at each step.
A $600,000 REFINANCE from 3.29% down to 2.80%
This will save you a respectable $57,240
A $600,000 REFINANCE from 3.29 % down to 2.80% and implementing our 2 mortgage hacks
1) Keeping your mortgage repayments the same, rather than going down to the new, lower rate.
2) Switch to fortnightly repayments. Regular repayments can save you thousands in interest.
This will save you an additional $73,841.
Our client now breaks the 2.80% 1 year fixed rate 6 months early, and re-fixes on a new 1 year fixed rate of 2.44%. Under the safe harbour formula the lender can lend that money for the remaining 6 months at 3.39%. So they are better off, and there’s no break cost, just a small administration fee. Our happy client has just saved an additional $42,673.
You have just saved an additional $42,673 AND you will repay your mortgage 7years and 1 month earlier.
*Based on a 30 year loan term.
Thanks to our refinance - restructure - Mortgage Match process, our client now has a total savings of $160,832 using our Mortgage Match method! So you could save $57,240 with a traditional refinance. Or $160,832 and slash 7 years and 1 month off your mortgage using our system. Bit of a no-brainer isn’t it.
We don't charge for our services unless it’s something complex, and if that's the case we’ll tell you upfront.
We deal with all major banks, and we know who's competing for new customers at any given time and who will give the best deal. We do the negotiation for you.
We advise on things such as loan structure, budgeting and our view on lowest interest rates. Bank employees technically aren't allowed to give their view on these and if they do it’s in favour of their bank.
Great advice matters. Let us help you with a free, no obligation review.contact us