Refinance and renegotiate to save money during COVID-19

When was the last time you had a proper look at your finances?

Coronavirus and the associated economic fallout has seen record unemployment, social upheaval, and all the uncertainty that comes with it. Which means plenty of people are looking for ways to cut back on unnecessary expenses.

The good news is you probably have options. Whether it’s your mortgage, health insurance, or other commitments, shopping around can help you save money. Here’s how to get started.

Your mortgage is negotiable

Many banks provided home loan repayment holidays to those who needed to take a break from their regular repayments as the coronavirus hit and the unemployment rate soared. For those customers who took up the offer, most mortgage repayments are schedule to resume in September. Ahead of then, now might be a good time to shop around and find a better offer.

A record-low cash rate has seen mortgage rates tumble in recent years. The RBA recently undertook a study which shows that customers pay a loyalty tax, meaning that people who took out their loans only a few years ago may be paying significantly more than new customers.

The official cash rate is now just 0.25% (down from 1.5% a little over one year ago). That drop has had a significant impact on interest rates, so it’s worth comparing prices and shopping around.

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