Save interest on your mortgage
Save more than $53,000 in interest on your $300,000 mortgage
Interest payments can be seen as the cost of renting money. Your objective should to pay as little as possible by getting the cheapest rate with the most flexible payment plan.
Negotiation is essential
Your two objectives at the negotiation table should be to get the biggest interest rate discount you can with a flexible loan and second, to put the money you gained through your negotiated discount towards reducing your loan. Start by negotiating a better interest rate from the begining and ask your mortgage broker about available discounts.
Professional packages
If your mortgage is a variable rate loan of a reasonable size (more than $150,000), you may qualify for a range of discounts on your standard variable rate*. Most lenders offer professional packages, and you can usually get around 0.5% off a lender’s standard variable rate and loans from $250,000-$300,000, you can get up to 0.9% off their standard variable rate*. The bigger the loan size, the larger the discount!
Simple mathematics
In the scenario below, you can see how a $300,000 mortgage on a 30-year period is impacted by negotiating a professional package and making regular extra repayments.
| Standard variable rate | 5.80%* | Minimiser strategy | |
| Total interest payable | $333,693.28 | ||
| Monthly P&I payments | $1760.26 | Professional pack | 5.10% |
| Professional Pack | 5.10% | Total interest payable | $286,385.76 |
| Total interest payable | $286,385.76 | Monthly P&I payments | $1,764.85 |
| Monthly P&I payments | $1,628.85 | (from 5.80% rate) | |
