While everyone’s mortgages are going up. Mine’s going down. In fact just this week it’s now $275 a week less. Which is about $15,000 a year less payments. It’s like a free holiday or two.

How I am dong this is really easy but it is a secret most don’t fully understand.

If you call your bank to ask for a loan review they may come back to you with a small reduction. For many people they feel like it’s a win, thank their bank and just keep paying all this additional interest. But they don’t have to if only they did a little more than call their bank.

It spins me out. Property investors are often keen to get the very best property management fees to try and save money but are throwing money away because they have not been savvy enough to take better action with the interest they pay the banks.

The secret I use annually is really simple. Who would be silly enough to pay $15k PA more than what they really need to.

So here it is. Below is exactly what I do to save massive amounts of money on interest I pay.

Calling your bank will get you a small reduction. It will feel like you’ve won, but really the bank has won and the amount you are saving is tiny.

You need to have a mortgage broker call your bank and explain you plan to move to another bank. This broker will be able to get you a considerably better rate than you, with your bank even with leaving all your loans with the same bank and nothing changes but the interest you are paying.

Calling your bank will get you a small reduction. It will feel like you’ve won, but really the bank has won and the amount you are saving is tiny.

You need to have a mortgage broker call your bank and explain you plan to move to another bank. This broker will be able to get you a considerably better rate than you, with your bank even with leaving all your loans with the same bank and nothing changes but the interest you are paying.

But here is the big secret. Not all brokers will do this. Mainly because they would be doing this for you for free & just aren’t prepared to work for anyone for free. What’s worse if they can get for example ½ a % off they might not tell you if you change banks you could get 1% off. Why would they do this? They are busy & they also know often most people will just take the ½ % and leave things how they are.

So why would anyone not want to get 1% interest off and save $15,000 a year? Well to change banks you need to fill out paperwork. Yep sure that’s a pain in the bum. But we are talking about saving $15k a year. $30k over 2 years, $45k over 3.

If you think you have a good broker. That’s great. But how would you really know?

What Chris from Sunshine Coast Financial Solution will do for you free is look at your current bank, current interest rates, ask them for a reduction and if their reduction is good he will tell you your bank is offering you a great reduction and you should take that and stay with them. It’s a free service. Won’t cost you a thing.

If the rate reduction is not good enough is when Chris will then research what banks could do better and what you’d save by making the move.

It’s all free to you, so why wound you not? It sure beats trying to save 1% on property management fees . Also the best way to know for sure if you really do have a current great mortgage broker is to get this check done.

What do I get from recommending Chris? Nothing. Just the knowledge that property investors are doing what they can to maximise their returns on their investment properties.

So how did things go for me in 2023?

Normally I just need a broker to call my bank, they freak out and they offer me a great new rate. This year was different. They still freaked out & offered me a new reduced rate. But what’s totally wild is Chris looked into it and said if we re-do your loans we can do considerably better. So we did. What’s even odder is I am still with ANZ, just as a new customer with new loans & a new customer rate.

I had to supply Chris some financials, he applied. I got approved. For me it was a really small amount of work. A lot more work for Chris.

I’d suggest everyone needs too reach out to Chris to at least just see what’s possible. While rates raise are on hold right now. I expect more will come later in 20223. Chris is on 0424 637 001 or Chris@scfsolutions.com.au