The rate loyalty tax
Banks reserve their most competitive rates for new customers. Once you have been with a lender for 2+ years, you are typically paying their back-book rate — routinely 0.3–0.8% higher than what new customers receive. On a $600,000 loan, that 0.5% difference costs $3,000/year.
What does refinancing cost?
Discharge fees from your current lender: $300–$500. Select lenders may offer cashback incentives to attract refinancers — ask your broker for current offers. If on a fixed rate, TAG Finance calculates break costs before making any recommendation.
TAG Finance's free health check
TAG Finance's free health check compares your current loan against 25+ lenders and provides a clear savings estimate within 24 hours. No cost, no obligation. Our average client saves $2,500–$3,000/year. Call (08) 9367 1227 to get started.