Breaking News: Congratulations to Abi and Prem, the lucky ‘Refinance & Rejoice’ Winners of $50,000!
Attention all homeowners!The moment you’ve been waiting for has arrived! After an exciting competition in 2023, we are thrilled to announce the winner of our ‘Refinance & Rejoice’ competition. Let’s all raise our virtual glasses and give a thunderous round of applause to ‘Abi and Prem’ from Armstrong Creek in Victoria. This lucky individual has just won a monumental $50,000 off their mortgage by participating in our extraordinary Refinance & Rejoice Competition. Yes, you read that right – a jaw-dropping $50,000 slashed off their mortgage, making dreams of a lighter loan a reality! Refinancing your mortgage might have seemed like a mountainous task, but Abi and Prem took the leap and emerged victorious, securing not just potential thousands in savings but also this life-changing windfall. Here’s what they had to say about the win, “Thank you for your call today, an unexpected call and a great start to the new year. Honestly a surprise and a great help with the increased interest rates. Thank you so much to Mortgage House and the team, especially Jimmy who helped us with the remortgage process, it has been a pleasure working with Jimmy. This is unbelievable and we will definitely look at booking a holiday!” Our General Manager, Sean Bombell, couldn’t be happier, to be awarding this life changing prize to Abi and Prem. “Seeing Abi and Prem win such a significant amount amidst rising living costs and interest rates truly embodies our mission at Mortgage House. We’re here to help Aussie’s achieve home ownership and create opportunities for them to save and thrive. It’s an indescribable feeling to give away $50,000 and help someone on their journey to paying off their home loan faster.” But wait, there’s more! For those who missed this opportunity, don’t worry – at Mortgage House, we’re always cooking up exciting prospects to help you save big. Keep your eyes peeled for future offers! From all of us at Mortgage House, we extend our heartiest congratulations to Abi and Prem! Your mortgage journey just got 50,000 x lighter, and we’re thrilled to have been a part of it. And to everyone else, thank you for being part of this thrilling campaign. Your support and enthusiasm make these moments even more special and even if you weren’t the lucky winner, you’ll still save $$ with your new refinanced home loan. Refinance & Rejoice isn’t just a tagline; it’s a reality for Abi and Prem, and it could be for you in the future. Keep an eye on our website and Facebook page for more chances to make your mortgage dreams come true! Click here to save on your mortgage todayand find your own reasons to Refinance & Rejoice!
Should you fix the rate or stick to a variable rate?
Australians have been enjoying low interest rates for some time now, but it begs the question, what will interest rates do next? If you’re one of many Australians taking advantage of record low interest rates with a standard variable rate loan, you may be wondering how long it’s going to last – is it time to switch to a fixed interest rate before interest rates take a sudden hike? There is much speculation about interest rates, but the reality is, no one can know for sure what they will do next. The decision to fix your rate or stick to a standard variable rate should not be based on interest rate predictions, rather your personal circumstances and financial goals. What is a variable rate? Financial institutions provide different types of home loans to their customers. Differences in home loan products will often surround the features offered, loan amount, repayments, security required and of course how interest is charged. There are two main ways that a lender will charge interest. They will use either variable interest rates or fixed interest rates. These different types of interest rates each come with their own advantages and disadvantages. Let’s take a look at what each term means. Each month the Reserve Bank of Australia (RBA) sets the official cash rate and financial institutions base their interest rates on this figure. If you have a variable rate home loan it means your interest will be largely determined by changes in the official cash rate. This means if the official cash rate decreases, your interest rate will usually decrease. In the same way, if the official cash rate increases so too will your interest rate. A fixed interest rate refers to an interest rate figure that a lender allows customers to lock in for a set period, usually between 1 and 5 years. This is known as the fixed rate period. When a fixed interest rate is offered it is still influenced by the official cash rate, but if the official cash rate rises or falls during the fixed rate period the interest rate remains the same. A split home loan allows customers to enjoy both a variable interest rate and a fixed interest rate. A customer can choose to have a portion of their home loan on a variable interest rate and a portion of their home loan on a fixed interest rate. Most financial institutions will allow a customer to choose how they would like to split their home loan, whether it’s a 50/50 split or 80/20 split, it’s up to the customer. Do fixed mortgage rates change? Fixed mortgage rates are fixed. This means they do not change during the fixed rate period which could be anywhere from 1-5 years. The appeal of a fixed interest rate home loan lies in its unchanging interest rate which provides predictability to borrowers and allows them to plan ahead. Borrowers are protected from any sudden interest rate rises and their monthly repayments remain the same throughout the fixed period. So, what happens at the end of the fixed interest rate period? This is when fixed mortgage rates change. At the end of the fixed rate period the interest rate will normally revert to the lender’s standard variable rate. At this point, a borrower can choose to stick with the standard variable rate, refinance to get a better deal or fix their interest rate again. What is an easy way to calculate my fixed rate? A financial institution will offer fixed rate interest rates based on their market expectations. If they forecast a drop in interest rates they may offer a fixed interest rate at a slightly lower rate to lock customers in before interest rates drop. As a general rule, when the official cash rate is low, fixed rates offered by financial institutions are often slightly higher than their variable rates in anticipation of interest rate rises. However, Australia is experiencing a season of consistently low interest rates. The RBA has not changed the official cash rate at any of its last 28 meetings. This has led to some financial institutions offering very low fixed interest rates to customers. A lender will also take into account your “risk” when deciding what fixed interest rate they will offer you. This means they will consider your loan to value ratio (LVR), income, credit history and personal details. If you represent a lower risk you may be eligible for a more competitive fixed interest rate, while applicants who represent a higher risk to the lender may not qualify for a low fixed interest rate. A fixed interest rate will also vary according to the fixed term. A longer fixed term will result in a higher fixed rate while a lower fixed rate can be secured with a shorter term. The above information is a lot to consider, but luckily you don’t have to work it all out for yourself. There is an easy way to calculate your fixed rate using a mortgage rate calculator. Mortgage House offers a Best Rate Mortgage Calculator for free. Simply estimate the value of the property you wish to buy, specify the amount you would like to borrow and advise whether you have documentation. Choose a fixed rate and the calculator will provide you with the fixed rates and terms that you are eligible for. Which rate is right for me? When it comes to the question of which rate is right for you, the question really should be, which home loan is right for you. Variable and fixed interest rate home loans differ in more ways than their interest rates. A variable rate home loan gives borrowers more freedom and flexibility. Often a variable rate home loan will allow borrowers to make extra repayments and there may be no penalty if you pay off your home loan early. If you receive an inheritance or a bonus from work, you may be able to use these funds to make extra repayments and pay off