Do you like free money? Stop what you’re doing right now and check your interest rate – even if you’ve been on a 6-month loan holiday.

The pandemic sure has shaken up the banking system and it’s looking like the RBA could be on hold for the long haul according to Finsure.

Finsure managing director John Kolenda said that the RBA looks set to keep its cash rate at a record low of 0.25 per cent for the rest of the year.

It seems reducing rates any further would actually have very little impact on an already struggling economy – in fact it could do more harm than good.

And while not much activity is expected around official interest rates, if you’re currently a home loan customer, you’re still in a strong position with your lender, with many offering a new round of cuts.

According to the RBA, the average variable rate by owner-occupiers on new loans in June was 2.92 per cent. So basically, if you have a home loan rate starting with 3 or worse 4, it’s time to talk to your bank or if you’re really clever, talk to a mortgage broker and they’ll find the best deal on the market for you and take care of a lot of the legwork.

Really everyone with a home loan right now should be paying an interest rate in the 2s, often saving you around 1.0%. And do you know what that 1% equals – hundreds of dollars per month. See, free money!

And even if you’ve been on a 6-month loan holiday, don’t fret – you can absolutely still seek a lower interest rate. Banks are keen to have dialogue with customers, particularly those resuming mortgage repayments.

Banks will offer a better deal if you are ready to resume repayments so don’t be complacent about your interest rate as this can potentially cost you a lot of money.

We are in a highly competitive lending market. There are deals aplenty for new borrowers, or for existing borrowers with a good credit score.

There’s no point waiting for the RBA to cut official rates again. Do not be complacent about the interest rate you are currently paying as this can potentially cost you a lot of money.

And there are plenty of options out there if your current bank doesn’t come to the party.

Non-bank lender Homestar Finance has introduced a record-breaking 2.18% mortgage rate for property investors, as the lowest investor rate in Australia nudges closer to 2 per cent. 

The 2.18% investor rate is fixed for one year, with a comparison rate of 2.58%.

The new rate is 31 basis points lower than the lowest fixed investment rate from a big four bank of 2.49%, coming from Westpac, NAB and ANZ.

Homestar’s rate is also 1.40% lower than the Reserve Bank of Australia’s (RBA) average existing customer rate of 3.58%.

Aside from the lowest fixed investor rate, Homestar also shares the title of lowest variable investor rate with Westpac, both offering variable options at 2.49%.

Loans.com.au has a 1.99% investor rate, but investors must also bundle their owner-occupier loan with the online lender. 

We’re talking savings of up to $85,958 on the life of a 30-year $400,000 loan. So please, STOP WHAT YOU’RE DOING. Go get that free money. And then invest it in another property!