Rate Cut: Two Ways You Can Win With Your Home Loan

If you’ve got a $600,000 loan lets say at 5.8%, your monthly repayments would drop by about:

 $95 less per month

 ~$1,140 less per year

That’s real breathing room to help with the rising cost of living, groceries, petrol, or just giving you a little more space in your budget.

And that’s just by staying with your current lender. If you refinance, you could save even more as there may be lower rates that you qualify for elsewhere, just this morning I got 5.3% for one of my clients that is refinancing – now that will make a HUGE difference to their repayments!

Instead of lowering your repayments, you could keep them where they are. That extra ~$95 per month goes straight off your loan balance.

Here’s what that means on a $600,000 loan:

Pay off your loan almost 2 years earlier
Save over $80,000 in interest over the life of the loan

That’s a powerful way to fast-track becoming debt-free.

There’s no one-size-fits-all answer. Some families need the extra room in their monthly budget right now, and that’s perfectly fine. Others prefer to push harder while rates are lower and smash down their loan quicker.

The key is having someone who understands your circumstances: income, expenses, housing needs, and future goals. That’s where a good broker comes in.

I’ve been a mortgage broker for over 15 years, and if there’s one thing I’ve learned, it’s that finance is often the biggest piece of the puzzle for couples and families. Getting the home loan is just step one, what really matters is having the right strategy in place to manage that loan, pay it down, and make sure your money is working for you.

Think of it like having a personal trainer for your money. People get a trainer to stay fit, but very few have a broker to keep them financially fit. Believe it or not, I was a personal trainer before becoming a broker, keeping people accountable and helping them reach their goals is in my blood. Now I do the same with finances: I keep clients on track, review their loans, and make sure their money is working hard for them.

For me, it’s not just about getting you a loan, tick the box and move on. It’s about creating a strategy that helps you pay down debt, build wealth, maybe buy an investment property down the track, or simply own your home outright sooner.

 

Whether you choose to enjoy lower repayments or use the opportunity to pay your loan down faster, this rate cut is good news, but only if you make it work for you. If you haven’t sat down with a broker lately, do yourself a favour. Whether it’s to refinance, consolidate debts (like credit cards, personal loans, or car finance), or simply review your current loan, a chat could put you in a far better position.

 

Josh Bartlett 
Director Mynt Financial

 

Please do not take this as personal financial advice. Everyone’s circumstances are different and each situation needs to be assessed separately. For example, not every lender will allow extra repayments. The information provided is intended as a general guide only. Please speak with your broker to discuss your specific situation or reach out to me directly for an appointment if you don’t have a broker, I’d be more than happy to help.