Want to Save $8000 Off Your Mortgage Today? v2

– Want to save $8,000 off your mortgage? What about if you could do it today? We’ve been saving clients thousands of dollars every single day
just by targeting this one thing and I’m going to show
you how in this video. But first, let me introduce myself. G’day guys! My name’s Tim Guest. I’m Australia’s leading financial educator and the founder of Infinite Wealth and welcome to our
#JustAskTim video series where you can get all
your questions answered on anything finance, real estate and investment related and more. Now please like, comment
and share this video and if it’s your first time tuning in, welcome along and thanks for joining us and don’t forget to follow or subscribe wherever you’re seeing this. Our question today comes
from Elena and Elena asked, “What are the best
interest rates available “and should I refinance?” now, most people probably don’t realise there’ve been three major changes in the world of Australian
finance over the past few months that have dramatically
changed the landscape. The first was the removal
of the restrictions the Australian Prudential
Regulation Authority, that’s otherwise know as APRA, imposed to slow down the Sydney and Melbourne markets
over the past few years. Now, these include limiting
interest-only loans, high loan-to-value ratio loans, that’s loans with a small
deposit, and investor loans. How most banks met these requirements were simply by increasing
the interest rate on the loans they preferred not to give, resulting in many people
paying higher than they should. Second, APRA then deemed that
rates the banks are required to use when assessing an applicant was no longer appropriate in the current low
interest rate environment. So typically banks are required to use an interest rate higher than the current interest rate to ensure a customer can
still afford the loan if there were changes to interest rates. Reducing this assessment rate has resulted in people being able to
borrow 10 to 20% more than they could just three months ago which is opening up a huge opportunity for those whose loans had
switched to principle & interest but previously they
had issues refinancing. Now, finally, there’ve
been two interest rate cuts leaving us with very cheap money and the lowest ever
interest rates on record. These three changes have opened up some really impressive
deals with major lenders around the country allowing customers to save thousands with interest
rates available under 3%. So let’s have a look at how
you could save $8,000 today. It’s pretty common for people to still be on an interest rate of 4.5%. If you’re talking a $500,000 loan, that’s $22,500 worth of interest
payments in a single year. Now, if you’re able to reduce
that interest rate to 2.89%, which is the common interest
rate available today, still a $500,000 loan, you’re going to be talking
about interest of $14,450. Overall, that’s a saving of
$8,050, just by refinancing. That’s 150 bucks a week. Imagine the better use that
you could put that money to, 150 bucks a week rather
than giving it to a bank. Now keep in mind that
there are other factors that you need to be considering
when taking out a loan. So these could be things
like additional fees, the structure of the loan and features like offset
accounts and redraws. But even if you only
reduce your interest rate by 1%, that’s still a
saving of $5,000 a year So it’s critical that you must speak to a professional to
ensure that the product is best for you and of course,
our team at Infinite Finance are more than happy to have a chat to you, review your situation and provide you with
your options at no cost. Now, look, guys, that’s
pretty much it from me but before I go, just a couple of things. Don’t forget to like,
comment and share this video and if it’s your first time tuning in, please follow or subscribe so you can see our videos moving on. Don’t forget also to stay tuned later in the week for the Week In Real Estate where you can get all the top
stories happening this week in finance, real estate and investment but apart from that,
guys, have a great week and remember, there’s
only one thing in life that makes a difference… Action!

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