How Brian slashed his home loan interest by one-third – for free

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How Brian slashed his home loan interest by one-third – for free
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OPINION: Simply keep your loan repayment at its original level – what you have long been used to repaying – to slash both your interest and the time left on your loan

Hi Nicole. Thanks for your encouragement in a recent article to haggle mortgage rates with our bank. I was able to get a 1.1 per cent discount from our existing loan with ME Bank. Being on aged pensions, with $60,000 left to pay off, it may improve our chances of home ownership before we die and in time to enjoy a few extra dollars. We were able to get an interest-rate reduction from 4.72 per cent to 3.62 per cent.

Well done you, Brian! And what cheek to not give you this discount from the get-go… although ME Bank is certainly not alone in this "don’t-offer-unless-asked" pricing policy. The"up-stumps-but-still-stump-up strategy" can save you thousands in mortgage interest over the life of the loan.Now, I don’t know for how much your loan was originally, which dictated your minimum monthly repayment. But with $60,000 left, assuming you have not accelerated repayments and have so far held the loan for nine years , it may have been $80,000.

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theage /  🏆 8. in AU

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