How Kevin from Villawood, NSW saved $425 per month on his home loan - Pearl Financial

How Kevin from Villawood, NSW saved $425 per month on his home loan

By Shane | Refinancing

Feb 16

Finalising your home loan and buying your first property is a huge relief. It’s all over… no more providing documents to the bank, no more forms to sign, no more solicitors to deal with… the hard work is done. However, that doesn’t mean that you shouldn’t keep an eye on home loan. Kevin met with Pearl Financial for a routine ‘Home Loan Health Check’ and, to his surprise, discovered that he could save $425 on his monthly home loan repayments.

The Situation

Kevin purchased his first property 5 years ago in Villawood, NSW, and like many people, hadn’t looked at his home loan since. The interest rate had come down over that time however he couldn’t be sure that the interest rate he was paying was reflective of what was available. Kevin didn’t think much of it and was happy to keep paying the bank whatever it was that they were asking.

After all, once you’ve purchased, it’s just a matter of making your repayments until the bank has told you that the loan is finished, right?

Wrong!

After a while, Kevin decided he should find out whether he was getting the best deal available. He had a few options available to him:

  1. He could approach every lender in Australia and enquire about every home loan product they offered, spending hours, if not days, sifting through the information; or
  2. He could approach Pearl Financial who compare 1,000’s of loans from over 25 lenders.

Option 1 was quickly ruled out. Kevin was simply too busy to be able to take the time to research every product from every lender and compare the features and benefits of each loan. He also didn’t know the rules and policies behind every lender, which was slightly concerning since his personal situation had changed since he last spoke with the bank about a home loan.

So, that just left option 2…

Enter Pearl Financial

Kevin met with Pearl Financial for a complimentary Home Loan Health Check. They quickly diagnosed him with ‘stale home loan-itis’, ‘high repayment levels’ and ‘elevated interest rates’… a concerning diagnosis indeed!

After getting to know Kevin, Pearl identified three possible home loans options to relieve the above conditions. All the options would save him money over the term of his loan and reduce his ongoing repayments.

So what did Kevin do…

Kevin was presented with the three options and decided upon a lender whom he believed would allow him to achieve his long-term goals.

The result…

He reduced his monthly repayments by $425, or $5,100 per year.

His repayments weren’t the only thing that decreased…

His interest rate decreased from 4.59% to 3.86%*.

Making his selection was the easy part, now he had to navigate the home loan application and approval process. Luckily for Kevin, Pearl Financial managed this process for him, making it as easy as possible.

What’s next for Kevin?

Kevin’s refinance was approved and he has been enjoying the benefits of having extra money in his pocket each month. All that extra cash has got him thinking… “should I be looking at an investment property?”

Who knows, you may be hearing more about Kevin in an upcoming article…

Could a Home Loan Health Check save you money?

If you have not reviewed your home loan for over 2 years, then it is highly likely that there are savings to be discovered. Lenders are constantly upgrading home loan products, adding discount packages, and offering special deals so it doesn’t take long for your old home loan to be start exhibiting symptoms of ‘elevated interest rates’ or ‘high repayment levels’.

The earlier we catch these symptoms, the more money we can save you, so if you’re unsure whether you’re paying more than you need to, get in touch with Pearl Financial.

 

Pearl Financial is a specialist mortgage broker who aim to help 100 Australian first home buyers to enter the property market in the next 2 years. 

They also aim to make sure that everyday Australians are not paying too much for their home loan.

 

Please note: The interest rate achieved by Kevin was available at the time he enquired about refinancing and was suitable to his needs and objectives at the time. The interest rate may change between the time of him obtaining his loan and the time that you are reading this. The interest rate may no longer be available. Kevin’s personal situation, like everyone’s, is unique. Because of this, his home loan options may not reflect the options that are most suitable for you. You should seek professional advice on what option is best suited to your needs and objectives.

Pearl Financial is more than happy to help you identify the best home loan option for your needs and objectives.

 

*Comparison rate 4%.

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About the Author

Shane specialises in helping Gen Y professionals and business owners make an impact by accumulating more assets, generating more income, and having more time to enjoy life. He has a Master of Applied Finance, an MBA, and a Master of Financial Planning. He is also a terrible golfer.

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