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Did you pay more because you had less deposit?

If you've bought a property in the last few years using less than 20% deposit then you've almost certainly been paying a much higher interest rate than you would have got with more equity... but even though your house has most likely shot up in value the bank will likely still be charging you this much higher rate.

It's time to look at how you could save a lot on your mortgage, just by reducing your interest rate.

Depending on the bank you're with this will either be a "margin" added to your interest rate, or a combination of a fee and a higher fixed rate. So let's look at how you can get access to the best rates and save a bunch of money in the process.

How will this benefit you?

  1. Saving .25% - .75% on your interest rate (on average that's $30/wk on $300K)
  2. Free up equity to borrow for property improvements or consolidating other loans
  3. Repay your loan faster

For example we had a couple recently who were paying a whopping 7% for a property they had purchased 2 years ago because their bank had charged a much higher rate due to their low deposit. We were able to bring this back significantly and making the same payments they are now paying off a huge $80/week more than they were before, reducing their debt so much quicker.

So what do you need to do?

  1. Get in touch with us and we'll make a plan specific for you
  2. We'll approach your bank (and others) to see if your higher rate can be dropped or if it makes sense to take a better rate elsewhere
  3. We will advise whether a valuation is required or if you are able to borrow extra for debt consolidation or home improvements
  4. Think of what you'll spend that extra money on that you're not paying to the bank each week!
As always we're keen to help save you money on your home loan, especially if you're in this situation, being penalized by the banks for not originally having 20% deposit.

Click the "Contact us" link above or email us directly if you think you're paying too much for your home loan. We're only too happy to help!

We look forward to hearing from you soon.

Adam, Claire and the My Mortgage team