Are you paying a Loyalty tax?

There really is no benefit in being loyal to your bank these days. In fact, the term ‘loyalty tax’ is a common one used to describe the higher interest rates you pay if you don’t keep an eye on your home loan interest rate regularly.   You need to be prepared to refinance if your current bank isn’t keeping your interest rates sharp!

Whilst it’s not guaranteed, it looks like interest rates are at their peak with the most likely next move to be downwards.  When that will happen is anyone’s guess but it is definitely something to look forward to!  So that’s good news for those of us with home loans because banks will all pass on the rate reductions as they come right?  Maybe….

As rates come down, it is very likely that your home loan rate will reduce, but will it reduce as quickly as other potential options in the market?

It’s really important to keep an eye on the market so you get the best benefits of the current rate environment.  Is your bank keeping up or only really looking after their new to bank clients?  Have your repayments reduced or are they staying high even though the rate has dropped.

As always, feel free to give me a call on 0422 507 705 to discuss your personal circumstances and we’ll make sure you’re getting the best rates possible for your circumstances.

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