Mr & Mrs Eden are government workers and have been in their respective jobs in excess of 5 years. They are looking to reduce their monthly loan repayment amount but also want certainty of their repayments, their current bank is not really offering a competitive fixed or variable rate so they’ve started shopping around.
They have a $435,000 loan with Bank A with a variable rate of 4.58% and their property is worth $570,000.
Given their strong and stable employment type, we were able to offer them the following solution:
- ING Orange Advantage
- 2.09% 2 year fixed (Comparison Rate 3.77%)
- The out of pocket costs to refinance were $1,950.00
- Indicative interest savings of $20,167 over 2 years
By providing the clients with this option, they were able to save $18,217 in interest over their 2 year fixed period (i.e. total indicative interest saved – out of pocket refinance costs).
Disclaimers: Some names and identifying details have been changed to protect the privacy of individuals. Lender information and interest rates displayed are correct at the time of publishing. All applications are subject to lender specific credit criteria. Comparison rate is based on a loan of $150,000 principal over a 25 year term. WARNING: The Comparison Rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees and cost savings such as fee waivers are not included in the comparison rate but may influence the cost of the loan.