I'm just going to come straight out and say it...
If your home loan is with a major bank or worse, your investment property mortgage is with a major bank you are paying thousands of dollars more than you should be.
In fact since rates started dropping earlier this year we have saved many clients thousands of dollars, a large number of clients tens of thousands and one client we cut their repayments by a whopping $72,000 per year (it was a $2m mortgage, but still...). As one client recently said to me - "it's a game changer for our family"
Scroll down to Mortgage Documentation - if you have already started the process with us.
Essentially this money is a donation from your family to the bank and goes straight to the bank profit. At this time of year most Australian families can think of far better uses for their money than gifting it to the bank.
My apologies for being so straight up, blunt and perhaps a little crass. All year I have been writing blog articles and posts on facebook alluding to or subtly suggesting the above facts. This time of year, for me, puts a different perspective on things. A much clearer perspective.
This year we have refinanced many clients to lower rates. Before every refinance I gave their existing bank the opportunity to match the rate we were considering refinancing with. On every single occasion with zero exceptions the bank dropped their rate by 0.10% or maybe 0.20% at the most, but still a long way from the new lender rate. Regardless of how big the loan was - $2m, $3m made no difference and regardless of how long the client had been with the bank 10 years 15 years made no difference.
Last week I had a good chat with a long term client, lets call her Betty. We had placed them with NAB seven years ago when the NAB was doing great deals for chartered accountants. I started our chat with the usual "I will fill in the NAB pricing discretion form online and submit..." however Betty cut me off mid spiel. She told me not to worry about all that crap and asked me straight out what was the best rate I had. Because it was owner occupied and below 70% LVR I told her Mortgage House had 2.79% variable. The next day she sent her documents and and we lodged her application last Friday.
Mortgage Documentation by Monday 9 December
If you would like to save thousands and drop your repayments this year we will need all your Dreaded Documentation to us by Monday 9 December. This will give us just enough time to get your application lodged and approved before our office closes for the year on Friday 20 December.