Resi Switch & Save Mortgage Refinance
Saving Money with the Resi Switch & Save Mortgage Refinance
Many customers find that it’s difficult to reduce the amount they owe on a mortgage quickly. This is usually because the amount they pay on a repayment each month is eaten away with interest charges.
However, refinancing an existing home loan over to Resi Home Loans on the Switch & Save Mortgage Refinance option can help to save thousands of dollars in interest payments. It can also speed up home loan reduction plans and pay down that mortgage balance much faster when it’s used the right way.
Resi Home Loans have discounted the standard variable rate down to a low 6.64% variable for 24 months, thereafter 7.55% for the first two years of the mortgage term. This reduces the interest charges and makes it easier to begin repaying the balance much faster.
Once the introductory rate ends, the rate will revert back to whatever the standard variable rate is at that time. Once again, Resi allow borrowers to save money, as their standard rate is still well below the standard rate advertised by the big banks.
Interest Rates and Fees
The current interest rates and fees charged for the Resi Switch & Save Mortgage Refinance home loan are as follows:
| Fee Type | Interest Rate/Charge |
| Introductory Rate | 6.64% variable for 24 months, thereafter 7.55% |
| Standard Variable Rate | 7.55% |
| Application Fee | $0 |
| Monthly Account Fee | $0 |
Saving Money with the Switch & Save Mortgage Refinance
In this example, a customer has an existing mortgage of $250,000 to refinance over to Resi Home Loans. Even at the standard variable rate of 7.55%, the customer can benefit by paying less in interest charges than many of the big banks charge on standard mortgage rates.
However, the benefit of paying a low 6.64% variable for 24 months, thereafter 7.55% for the first two years means a smart customer will take advantage of this to speed up mortgage reduction plans.
Here’s how it works:
During those first two years, the minimum repayment due will be much lower than the amount the customer is currently paying. At 6.64% variable for 24 months, thereafter 7.55%, the minimum payment due will be $1,643.16. That customer can use these lower payments to free up cash flow and put towards other bills or expenses. After two years, the repayments will rise to reflect the switch back to the standard variable rate. At the current rate of 7.55%, those monthly payments will rise to $1,756.60.
This means the customer is saving $113.44 every month during that two year introductory term. The extra cash flow can be put into savings, or used to repay other debts more quickly, or whatever purpose the borrower prefers.
Of course, that same customer could choose to ignore those ‘lower’ temporary payments and just pay the same amount that would be due if the standard rate was being charged throughout the mortgage. This reduces the mortgage balance much faster and saves thousands of dollars in interest charges over the term of the loan.
Example 1:
This example shows the effect of paying the minimum monthly payment due for two years throughout the introductory term. The borrower has repaid more than $5,000 off the amount borrowed at the end of two years.
| Payment | Payment Made | Interest Rate | Opening Balance | Closing Balance |
| 1 | $1,643.16 | 6.64% variable for 24 months, thereafter 7.55% | $250,000 | $249,790.18 |
| 6 | $1,643.16 | 6.64% variable for 24 months, thereafter 7.55% | $248,866.45 | $248,938.78 |
| 12 | $1,643.16 | 6.64% variable for 24 months, thereafter 7.55% | $247,464.89 | $247,624.62 |
| 18 | $1,643.16 | 6.64% variable for 24 months, thereafter 7.55% | $246,264.60 | $246,033.36 |
| 24 | $1,643.16 | 6.64% variable for 24 months, thereafter 7.55% | $244,857.12 | $244,617.81 |
Example 2:
This example shows a borrower willing to stick to the ‘regular’ repayments that would be due if the interest rate was stuck at the standard variable rate of 7.55%.
| Payment | Payment Made | Interest Rate | Opening Balance | Closing Balance |
| 1 | $1,756.60 | 6.64% variable for 24 months, thereafter 7.55% | $250,000 | $249,676.74 |
| 6 | $1,756.60 | 6.64% variable for 24 months, thereafter 7.55% | $248,365.04 | $248,032.40 |
| 12 | $1,756.60 | 6.64% variable for 24 months, thereafter 7.55% | $246,340.39 | $245.996.14 |
| 18 | $1,756.60 | 6.64% variable for 24 months, thereafter 7.55% | $244,245.08 | $243,888.82 |
| 24 | $1,643.16 | 6.64% variable for 24 months, thereafter 7.55% | $242,076.65 | $241,707.96 |
This example shows the customer has repaid almost $8,300 off the amount originally borrowed in the same two years, simply by paying the same amount they were probably already paying off an existing mortgage with another bank.
Related posts:
- Resi Low Start Home Loan
- Resi Smart Option Home Loan
- Resi Smart Pro Lite Home Loan
- How To Switch Home Loans and Save Money
- Resi Smart Pro Loan
- Resi Flexi Fix Home Loan
- Resi Smart Pro Home Loan
- Resi Complete Home Loan
- Switch Your Home Loan And Save
- Refinance your Home Loan or Switch to Bankwest
Top Home Loans
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