It's simple maths. Saving $524 per month

When you hear an interest rate of 2.19% it sounds great. For starters, it has a 2 in-front of it.

Secondly it's very low. Without a doubt.

But what does it really mean? If you are anything like me, its not until I see the actual amount I would save each month, that I get it.

Let's throw around some numbers to illustrate the point.

If you were on a home loan interest rate of 3.95% for example, you could be paying $2610 per month. This assumes you are in the early stages of your loan.

If your rate was reduced to 2.19%, your repayments would drop to $2086 per month.

$2610 - $2086 = $524 per month savings.

And what would it mean over the course of a year? $524 x 12 months = $6288 saved.

While your situation may differ in regards to the above, the point to understand is how a saving in interest rate can impact upon your bottom line.

What are your numbers? How much could you save each month? How much would it make a difference to you and your family?

The only way to find this out is to ask.

This article is general in nature and is not provided as advice. Please discuss your individual situation with your broker to understand what options are available to you and whether they are in your best interests..

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Bernadette Leahy holds a Diploma in Financial Service (Finance/Mortgage Broking Management) and is a

 MFAA Authorised Member.

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Bernadette Leahy is a Credit Representative (CR No: 399004)

of Buyers Choice Licencing ACN 626 172 281

(Australian Credit Licence No. 509484)

Mortgages, Home Loan