Paying a ‘loyalty tax’ with your current lender?

On the back of the 9th consecutive rate rise by the RBA this month, it’s more important than ever to pay attention to the interest rate you currently have, to ensure you are not paying a ‘loyalty tax’ with your current lender.

Each time the RBA has increased the cash rate in the past 9 months, every lender has passed on the full amount within a couple of weeks to existing customers. What this means is that whilst your current lender passes on the full increase, they are offering new customers a reduced rate to win more business.

To make sure you’re not paying the ‘loyalty tax’, please reach out to Allan Hall Finance so we can work with you to get you the best deal possible.

Also, there is $359 billion worth of fixed rate loans which are due to expire this year. If you have one of these loans where your current fixed rate is around the 2% mark, you will be looking at a rate of 5%+ once it expires.

It’s important to start planning months ahead for this and Allan Hall Finance can help you through this transition by letting you know what your increased repayments will look like. For example, if you have a $700,000 loan, your repayments could increase by $1,170 per month post the fixed rate.

Allan Hall Finance will also explore the market to make sure you are getting the best deal possible post the fixed rate expiring.

By exploring the market for you, below is an example of what you could potentially save by simply engaging Allan Hall Finance to work for you to find a better deal.

Loan AmountCurrent Monthly Repayments0.50% Discount = Yearly Savings1% Discount = Yearly Savings

Lenders are also offering cashbacks between $2,000 – $5,000 to refinance

* Current monthly repayment amount is based on an Owner Occupied variable rate of 5.75% and savings are based on a 30-year loan term. T&Cs and lender approval apply

There are also some attractive cashback offers which some lenders are offering to get new business.

To speak with a member of the team from Allan Hall Finance, please get in contact.