Yahoo Finance How savvy mortgage holders can save $9k a year
Mortgage holders can save thousands of dollars a year by refinancing.
Aussies are being urged to switch to a lower home loan rate, with Sydneysiders able to nab the biggest savings.
New Mozo analysis found Sydney owner-occupiers could save a whopping $703 a month, or $8,439 a year, by switching from the average variable-rate home loan to the lowest rate on the market.
The data - based on the latest CoreLogic Home Value Index - found Sydney investors could save even more, with the potential to pocket $786 a month or $9,440 a year by refinancing the average property.
Also read: These Aussie homeowners got $2,888 in face of rate hikes
Also read: CBA, Westpac and ANZ's major RBA interest rate call
Also read: Interest rates on hold again - and that's how they should stay
Mozo spokesperson Rachel Watsell urged Aussie mortgage holders to compare interest rates to see if there was a better deal out there.
“By switching from the average variable rate of 6.60 per cent to the lowest rate of 5.54 per cent, investors and homeowners across Australian capital cities could save $474 a month, which equates to more than $5,691 a year,” Wastell said.
“This is money that could be put away in a high-interest savings account, or used to help cover the rising cost of living that is eating away at families’ household budgets.”
How much can you save?
Sydney led the charge in potential savings, with the median property coming in at $1,082,129, but Melbourne wasn’t far behind.
Owner-occupiers paying principal and interest in the Victorian capital have the opportunity to save an extra $498 a month, or $5,981 a year, based on the median house value of $766,912.
Even in Darwin, where the median house value is lower at $488,363, homeowners can save up to $317 a month, or $3,808 a year, by refinancing from the average to the lowest variable rate.
Here’s a look at the savings on offer for owner-occupiers across the country:
Sydney - $1,082,129 property - $703/month, $8,439/year
Melbourne - $766,912 property - $498/month, $5,981/year
Brisbane - $735,394 property - $478/month, $5,735/year
Adelaide - $671,755 property - $437/month, $5,238/year
Perth - $598,074 property - $389/month, $4,664/year
Hobart - $655,984 property - $426/month, $5,115/year
Darwin - $488,363 property - $317/month, $3,808/year
Canberra - $839,507 property - $546/month, $6,547/year
Follow Yahoo Finance on Facebook, LinkedIn, Instagram and Twitter, and subscribe to our free daily newsletter.
