PAY $73,000 MORE
In 2014 alone 332,000 investors borrowed an average of $430,000 in interest only loans to buy Australian real estate.
Over a typical 25 year loan* those investors can expect to pay an extra $72,953 dollars each in interest on average.
[* assuming 5%p.a., a 10 year interest free period and $10 per month fees.]
Switching home loans could save you money and give you the flexibility you need to allow you to better manage your finances, but you may end up worse off if you’re not careful. Read Refinancing Pros and Cons before you decide.
A NEW CAR? A WELL DESERVED HOLIDAY?
Refinancing could let you use the equity you’ve built up in your home to renovate, or replace that aging car, maybe even sneak off for a holiday overseas.
But that would also increase your debt and make the amazing power of compound interest work harder against you.