Refinance Loans

Will the government help PPL fixed rate refinance loans with less spending because of massive rate cuts?

(Australia) My loan Home is set at 9.09% (I know, you may feel sorry for me). A friend told me he thought the government was going to bring some help for people in my situation, so we can refinance without fees incurred in exchange for a variable loan. Does anyone know if this is true? Where I can find information about it? The current home loan interest rate is around 5.9 (lowest it has been in Australia for a long time.)

I have not heard anything about the government is doing nothing to help people who have set a rate when rates were rising and have been at great rates as hers (9% more). With rates as low as 4.69% available to banks typically did not move at break of loan costs, such as yours. The reason is COST BREAK so high is because when they signed the contract, the bank has a contract that will pay 9% over five years for example. Now, with falling interest rates the many who have if you cancel the loan, the bank may only lend money again to 6% for example. $ 500,000.00 x 9% = $ 45,000.00 a year in interest X 5 = $ 45,000.00 $ 225,000.00 $ 500,000.00 x 6% = $ 30,000.00 in interest per year x 5 = $ 30,000.00 $ 150,000.00 $ 225,000.00 – $ 150,000.00 = $ 75,000.00 (A loss of interest and benefit to the bank) So in this example, the bank seeks to offset this loss by charging the client (eg you) costs rest. I know this does not seem fair pay, but in reverse, when you locked in 6% and the rates had risen to 9% in the previous example would have saved the $ 75,000.00. Hope this helps explain why costs are so high pause. It's worth seeing a mortgage broker to see what options you have and do the calculations and see if I could save many potential by paying off and refinancing costs. It Pays to get good professional advice and I would be more than happy to help if you would like. James Grady Brisbane Mortgage Planner / Broker http://www.theNEXThomeloan.com 1300 660 107

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